Dr. Marc Faber joins Bernie Lo on CNBC Aprill 22, 2010 to discuss the coming “doom.”
As you know, I’m ultra bearish about the world. I think we’re all doomed because the governments are taking over and they will all bankrupt us and expropriate us, but it may not happen tomorrow. So, they’ll give us something to play with until the whole system breaks down and that is a bull market – they’ll just print money and more money.
I think before we all are doomed, the markets can go much much higher because of the stimulus that the government has brought about. The stimulus packages that would eventually bankrupt the sovereign states.
The market, if you print money like in Zimbabwe, can go up very substantially, but the purchasing power of money goes down and the standards of living go down. And, eventually you have either civil war, and by the way, in the US the mood has turned very very negative among certain groups of society.
[Bernie Lo interrupts and Faber doesn’t finish his second point]
We can only guess what scenario, other than civil war, may occur as an end result.
But remember, the situation Doc Faber is describing here is the end result of massive debt, which is essentially sovereign default or currency collapse.
Thus, one possible outcome could be a situation as described in James Rawles book Patriots in which the United States experiences a hyper-inflationary currency collapse, leading to a complete grid-down situation – the cities burn, millions die from starvation and violence, and only those who prepared in advance have any chance of survival.
Another outcome, along the lines of the civil war scenario, is discussed in John Galt’s free online e-book The Day the Dollar Died, in which the government, on the brink of societal collapse, declares martial law within the United States and implements a new form of government and currency system.
We’d recommend both books as a primer on currency collapse scenarios.
Marc Faber on CNBC April 22, 2010 (Part 1 of 2):
Marc Faber on CNBC April 22, 2010 (Part 2 of 2):