Marc Faber becomes a prepper, believing investors need to prepare now, remaining sceptical about the official narrative.
“Rule 1; do not believe anything that comes from a government official,” he said.
He thinks most of the Fed’s credibility is spent and that to retain legitimacy they have to increase rates to a level where they can pretend that they are fighting inflation.
“So far what inflation has done is reward wealthy people to some extent,” he said.
“Two years ago, I didn’t get anything for my cash, and now I can place money for one year at over 6% interest,” he added.
“Rule 1; do not believe anything that comes from a government official”
Marc Faber
He noted that the millennials and the poor with large credit card balances and mortgages, student loans, and consumer loans are worst impacted by higher interest rates.
“The cost of these loans have all gone up,” he said.
Marc Faber noted that the government with its huge debts is most impacted. “By next year the interest on the debt will be over one trillion dollars,” he said.
“A clever treasury would have borrowed at 1 to 2% when interest rates were artificially low.
Jenette Yellen, treasury secretary continued to borrow short term in 2020 to 2021 when interest rates were lower than ever in the history of the US.
Whatever the government sector does is worse than the private sector,” he said.
“The cost of these loans have all gone up”
MARC FABER
Marc Faber becomes a prepper as he sees a global debt crisis looming
He noted the US is not unique with many G7s in worst situations.
Tight monetary policy depends on where interest rates are in relation to inflation.
Higher interest rates don’t necessarily impact inflation.
He noted that Argentina has interest rates at 80% but inflation is at 82%. “If interest rates are at 2% and there is no inflation, then it is a tight monetary policy,” he said.
He noted that the level of speculation is another indicator of whether monetary policy is tight.
“The Western media bitch about China building railroads in Laos, Africa”
– Marc Faber
He also noted that the government could force people to lock down and use a certain currency.
Barter could come in small communities, or coins could come back-
paper money could disappear because paper currency today could become worthless in two or five years.
“In the 70s, you could rent a hotel room in New York for one dollar,” he said. Today a decent bicycle costs 1,000 dollars and a loaf of bread is nearly four dollars.
In the 70s 85% of global trade flowed through G7, countries, western Europe and the US.
In 2023 BRICs will have 30% of the global economy, with China and India being the largest economies by the decade’s end.
Global de-dollarisation is a fact, particularly with the dollar weaponised against countries that don’t submit to US hegemony rules.
Marc Faber becomes a prepper, believing that the hard-power of the Empire is all that remains
He noted in ancient times, the Roman Empire relied on its soft power to make friends with the peripheries.
China is winning over Africa, building infrastructure on the continent.
“The Western media bitch about China building railroads in Laos, Africa. Do they prefer the US carpet bombing Laos, Vietnam and Cambodia? An Empire with too many enemies could be on shaky grounds.
