Preps and Solutions
(Sponsored Ads)
Strategic Relocation
Recently Posted Articles and Videos
Ready Nutrition - Homesteading and Preparedness
Ready Gardens - A Ready Nutrition Company
The Daily Sheeple
The Prepper Website
SGT Report
SGT Report
top Prepper Web Sites
Featured Destinations
The Liberty Mill
Web Destinations

Clarocet for Kids

Marc Faber: Expect Market Correction for next 2 Weeks to 2 Months

Mac Slavo
June 10th, 2009
Read by 57 people

In an interview on June 9, 2009 with King World News, Dr. Marc Faber discusses his ideas on quantitative easing, the potential for hyperinflation, US equity markets, commodities and Asian market entry points.

Marc Faber, the editor of the Gloom Boom and Doom Report, believes that quantitative easing will lead to a situation similar to that of Argentina, where hyper inflation will be rampant, though his time frame on something like this ocurring may be several years:

The problem is that the government’s debt is growing at a very rapid pace of the last 12 months. It increased by 1 .9 Trillion Dollars. In the next 12 months I would expect it to grow by about 2.2 Trillion dollars. And then it will be very difficult to bring down the deficits in my opinion.

At the same time you have a school of economists in the US that essentially tell the world that the way to stimulate the economy is to make savings worthless, in other words, if you deposit money, $100, with the bank today in theory the bank will only give you back $95 in a year’s time. It would force people not to have deposits but to do something with the money — either spend it or invest it.

Bernanke is a destroyer of the value of money, and he’s a wealth destroyer and he’s an economic criminal. And now he has written many times about inflation and how you can generate inflation by dropping dollars bills on the United States. In my opinion he’s a mad man, but you have to pay attention to mad men who are in a position of power. And Mr. Geithner, if you look at him, he’s not mad, but he’s dishonest, and this is proven.

So you have the two basically running monetary and fiscal policies in the United States, and they are extremely dangerous.

Essentially, you have savers in the USA being punished for not spending or risking (by means of investing) their money. If you hold your cash in a mattress (or in a low yield CD), chances are in 10 years it will be worth less than 50% of it’s value today if inflation were to go ‘hyper’ at levels of 10% or more per year.

Marc Faber believes that the market is due for a correction because of the sudden and significant increase in equity prices over the last 2 months:

For ten days or maybe even a month or two months you can have a rebound in the dollar and a rebound in bonds and equities correcting on the down side and commodities correcting on the downside.

We rallied from 200 (on the CRB Commodities index) to 260 yesterday, and the low was in February of this year at 199. I think we could go down to around 220, possible.

In principle, my outlook for asset markets is this. When you think about it, the S&P when to around 940. Let’s say we correct down to 800. If we go down to 800 and the CRB drops 10% – 15%, there will be a reason for that to happen. I suppose the reason would be that the economy is weak. So, what happens if the economy is weak, we have Mr. Bernanke, the money printer.

…I think the worse the economic situation becomes the more money they will print. I don’t think we’ll see new lows in asset markets this year, but maybe at a later stage when the whole system collapses, maybe next year or in 3 years.

My comments: Marc Faber is basically saying that with the addition of the money printing element into the economy, the situation becomes very difficult to predict and forecast. But, the system will collapse eventually. For those out there holding on to short positions, take the power of quantitative easing into consideration. If you really want to hold shorts, remove as much leverage from them as possible (i.e. go with 1:1 inverse ETF’s as opposed to leveraged instruments).

Interview Source: King World News

Click here to subscribe: Join over one million monthly readers and receive breaking news, strategies, ideas and commentary.
The Most Trusted Tactical Gas Mask In The World
Please Spread The Word And Share This Post

Author: Mac Slavo
Views: Read by 57 people
Date: June 10th, 2009

Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to Please contact us for permission to reproduce this content in other media formats.


Web Design and Content Copyright 2007 - 2015 SHTF Plan - When It Hits The Fan, Don't Say We Didn't Warn You - All Rights Reserved

Our Supercharged Intel Xeon E5-2620 v4 Octo-Core Dual Servers are Powered By Liquid Web

Dedicated IP Address:

The content on this site is provided as general information only. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a financial interest in any company or advertiser referenced. Any action taken as a result of information, analysis, or advertisement on this site is ultimately the responsibility of the reader.

SHTFplan is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to