Marc Faber’s populist uprising view was recently put forward in his latest interview.
Marc Faber, a Swiss contrarian investor based in Thailand and a Wall Street veteran who is best known for his Gloom Boom & Doom Report newsletter. Marc Faber’s latest doom forecast is that social upheaval could be about to rise.
Marc Faber’s populist uprising view centers around the mispricing of asset prices due to the central bank’s unprecedented monetary easing policy
“Very few people benefit from this asset inflation and the majority of people suffer and do not benefit from asset inflation” said Marc Faber.
“Very few people benefit from this asset inflation and the majority of people suffer and do not benefit from asset inflation”
Marc Faber’s populist uprising view is based on a perceived self-serving elitist system which excludes the majority from being able to obtain surplus income to invest and create wealth
Massive wealth inequality creates social disharmony which then gives rise to a power vacuum and that then provides political extremists with a platform. “The voice of the socialist tell the people that the problem is all the rich people are taking our money, when in fact it is that they have the assets and it is the central banks that gave them all their money” Marc Faber.
“They don’t attack the central banks because intellectually they don’t understand the problem” added Marc Faber.
Marc Faber’s populist uprising view was explained in the context of George Orwell’s Animal Farm(1945)
Absolute power resulted in absolute corruption which then led to an ideological revolution. Animal Farm, is a fable reflecting events leading up to the Russian Revolution of 1917 and then on into the Stalinist era of the Soviet Union.
“They don’t attack the central banks because intellectually they don’t understand the problem”
“Gross Domestic Product represents the cake in society,” said Marc Faber and Animal Farm “described how the pigs at the top took all the cake for themselves, leaving the others with nothing,” he said.
“Nowadays we have democracies that are not totally different we have an elite which takes a disproportionate part of the cake because they control the government. The banking establishment is very powerful it controls government” said Marc Faber.
“Something is wrong with a system where a money shuffler can become very rich where as an engineer essentially doesn’t earn much money at all”
– Marc Faber
When the money changers drive producers into poverty then Marc Faber’s populist uprising view could play out
“Something is wrong with a system where a money shuffler can become very rich where as an engineer essentially doesn’t earn much money at all” added Marc Faber.
In a rigged system, there is no point playing with a straight bat it will get you nowhere, according to Marc Faber.
“You have to learn how to cheat, you have to learn how to be a Mafioso, an Al Capone that is what the system demands nowadays” said Marc Faber.
Marc Faber is a controversial figure he recently came under fire for a racist remark when he wrote in one of his newsletters that he thanked God whites settled America.
Marc Faber’s populist uprising view is based on the financialization of the world which has led to a two-tier system and widening wealth inequality
“When I worked on Wall Street in the 1970s the stock market capitalization of the US as a percentage of GDP throughout the70s was between 25-30%. Now we are talking about a stock market capitalization alone as a percentage of the economy is 150%.
The bond market is even more financialized. If you add bonds to it then it is 300%,” said Marc Faber. “It is a huge asset bubble compared to the real economy,” he added. Or are we seeing hyperinflation, the debasement of fiat currency?
“Whatever the policymakers do this asset bubble will soon be deflated,” said Marc Faber. But he also conceded that “asset holders are powerful, they don’t want to deflate it.”
“The question is would it have been better economically to go into the hospital in 2008/2009 and clean up the system rather than to essentially inject the sick patient with more opioids to keep him alive? It’s going to get much worse the next time it happens,” he said.
“I am not optimistic about the global economy I think we could have a recession” – Marc Faber
Pensioners revolt could also be a catalyst for Marc Faber’s populist uprising
Unfunded liabilities of pensioners is a growing problem. Marc Faber explains that if pensioners have no savings other than what they hold in their pensions and there is a great reset that would result in a pay cut.
If your a pensioner, imagine receiving a message saying you’ll have to live with 50% cut, instead of 3,000 USD you’ll get 1,500 USD monthly payment instead, “that would be socially unacceptable there be a revolution”.
Marc Faber’s global economic outlook is negative. “I am not optimistic about the global economy I think we could have a recession” he said.
“I am a short seller at heart but in a money printing environment you have to be very careful about shorting, be selective, chose companies that have a fundamental problem” he said.
“As a contrarian, I have been looking at European banks which have been hit the hardest and could recover in a money printing environment. Insurance stocks performed very badly after a year ago and over the past 12 months they have performed very well” he added.
Marc Faber doesn’t think we will move back to the gold standard. He is concerned about a gold confiscation because gold takes money out of the system. He also sees a monetary system that would work aside from crony capitalism.
Marc Faber’s populist uprising view is not just financial but geopolitical with the rise of socialism and communism
The Westerners, who have never experienced the devastating lifestyle under socialism and communism, are amenable to the idea.
The millennials think the government should do more. They don’t know what that means. When the government can do more, it can do everything. They can have people build bridges in the desert where no bridges are needed to keep people busy, and that leads to a complete economic calamity” said Marc Faber.
Marc Faber’s populist uprising view is his biggest concern.
“My biggest fear is that they will come after you with guns and forks and say he has a big house so let’s go and rob him -it can happen. When the rule of mod comes about it is not going to be pleasant” he said.
Dan Loeb targets Sony. Dan Loeb is an activist investor and founder of Third Point, which oversees about $14.5 billion in assets.
Last year the activist investor viewed Campbell soup as a bargain when Third point reported that the soup maker could fetch a takeover value of $52 to $58 per share.
A year later and the activist investor Dan Loeb targets Sony
Dan Loeb's activist hedge fund Third Point is raising an investment vehicle to generate between $500 million and $1 billion so it can continue to buy Sony shares, according to a recent report in Reuters.