“Marc Faber, dubbed doctor doom, is known for his contrarian views and unorthodox investing style”
WEALTH TRAINING COMPANY
Marc Faber speaks frankly about the inadequacy of the central banks’ monetary policy, which he believes is widening the wealth gap and fracturing social cohesion
“Because of the Fed policies a group of people has done very well, the billionaires, they have increased their wealth significantly since the crisis started in March” said Marc Faber. The Dow is up 10.3% in three months, the Nasdaq nearly 30% over the same period and Gold is also up 12.56% over the same period at the time of writing this piece.
“So, Fed monetary policy has worked for some people, those that have benefited from asset inflation,” he said. But the millennial generation who don’t come from affluent families has been left behind. “This is the first generation that will have less wealth and earn less income” said Marc Faber.
“because of the Fed policies a group of people has done very well, the billionaires, they have increased their wealth significantly since the crisis started in March”
Marc Faber speaks frankly; he notes a new generation of voters is embracing Socialism
“There is a shift from a Laissez-faire free-market capitalist into socialism and central planning” he said “This is going to end in complete disaster for everyone, not just a few” he added.
Marc Faber speaks frankly saying investors are oblivious to the perils of socialism, he then recounts history.
“The Russian aristocracy before 1918 never thought that the Bolsheviks would have a chance, but they slaughtered the entire family of the tsar” he said.
“When communists took over 1949 China, many wealthy people never thought that communists would essentially expropriate everything and abolish private ownership” added Marc Faber.
“the Fed has become the central planner for money and it has caused a lot of consequences” – Marc Faber
Marc Faber speaks frankly, “the Fed has become the central planner for money and it has caused a lot of consequences” he warned
Extreme wealth inequality, aided and abetted by monetary policy, is fracturing social cohesion and causing dangerous political polarization. The migration of people from urban cities to less populated suburbs is not only due to the pandemic but rising crime and social disintegration.
Marc Faber is no Trump fan but he acknowledges the current US president would be better than a Socialist. “Better to have an idiot like Trump than a socialist” said Marc Faber.
Marc Faber speaks frankly about low-interest rates
“Low interest fosters bigger wasteful deficits and allows the government to become big” he said.
Over one billion dollars went to dead people. Work no longer pays millions of laid-off people receive more in benefits doing nothing rather than working, he noted.
UBI has been introduced by a Republican President Trump through the back door
“Sending out checks is like buying votes” he said.
Moreover, zero interest rate policy means most pension funds are underfunded, he noted.
Marc Faber points to a book entitled, The Economics of Inflation, a study of currency depreciation in posts war Germany, by Costantino Bresciani Turroni. The book examines what happens in periods of monetary inflation.
Marc Faber thinks Gold is relatively expensive, silver relatively cheap and he recommends 25% in cash, 25% in stocks, 25% bonds, and 25% in precious metals and related shares. He also sees cryptocurrencies as the future of currencies.