Marc Faber foresees challenging times ahead as most of the populace will struggle to keep their heads above water in an ongoing cost of living crisis.
Editor and publisher of the Doom-Gloom report, Marc Faber, believes the US is already in a recession with 70% of households living paycheck to paycheck.
Marc Faber thinks the working poor will balloon as wages are not keeping up with the true inflation rate.
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“Marc Faber thinks the working poor will balloon as wages are not keeping up with the true inflation rate”
WEALTH TRAINING COMPANY
Marc Faber foresees challenging times as currencies wither on the vine
He believes the cost of living increases exceed what the Bureau of Statistics is calculating at 2.7% per annum,
“My estimate is that the cost of living is around 5 to 7% or more,” he said.
“Assuming the government inflation figures are inaccurate.
We are not talking about growth but a contraction in real-term inflation adjusted,” he added.
He believes monetary policy benefits the few at the cost of the many, as he cites the growing wealth divide.
“Fed policy of money printing has lifted the wealth of 1% of the population. It favours Wall Street wealthy at the cost of the low and middle classes,” he said. Could the trickle-up wealth effect be financially engineered?

“My estimate is that the cost of living is around 5 to 7% or more”
MARC FABER
He thinks the Trump administration, the first meme coin president, will advocate more of the same, more creation of currency because they depend on asset prices going higher.
“A narrow group of stocks are driving the index higher. My view is that these selective stocks will go down and drive the index down with it,” he said.
“narrow group of stocks are driving the index higher. My view is that these selective stocks will go down and drive the index down with it” – Marc Faber
Marc Faber foresees challenging times with market-concentrated risks and high inflation persisting
“A narrow group of stocks are driving the index higher. My view is that these selective stocks will go down and drive the index down with it,” he said.
Oil prices going higher is where Marc Faber sees risks brewing.
He thinks the US and Israel will attack Iran, and if that happens, oil prices will go higher and take inflation up with it.
Higher inflation also means more currency created to service the 36.2 trillion dollar national debt. Interest payments on this ballooning debt are now over 1 trillion dollars.
In other words, a trillion dollars of currency is created annually to pay interest on the debt, which keeps growing exponentially. A debt spiral is underway, where the Federal government can’t pay off its debts and is forced to borrow more money.
Where is the opportunity for investors as Marc Faber foresees challenging times?
For more than 10 years Europe has underperformed the US, and he thinks there are opportunities there.
But war, another euro sovereign debt crisis and political instability add to the risks.
He recommends diversifying into tangible assets, like gold.
He sees two scenarios playing out a 2000 NASDAQ crash, which brought all asset prices down, or a 1989 Japanese scenario where Japan was 50% global market capitalisation. Capital flowed out of Japan into the US.