Marc Faber 2/2/11 ~ CNBC Reporter, ‘You heard it here first, Bernanke is a Liar’

Courtesy of CNBC

See ZeroHedge for full video of Faber and Taleb at the Russia Conference this week as well~

money quote-

…”before they can’t pay they would print money like there is no tomorrow so the dollar would continuously depreciate which would obviously be good for assets that you can’t multiply such as commodities and precious metals.”

“I also think it they print money what then usually happens is that standards of living of the middle class and the working class go down, because the cost of living increases faster than wage gains, and so the population becomes very distraught and dissatisfied and eventually the government to stay in power or distract the attention of the people, either goes to war or blames a minority for the mishaps, but usually after a period of very heavy money printing war follows.”…

Commodities baby

Faber on Bloomber 1/25/11~

February 8, 2011. Tags: , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Unemployment Statistics, Wall St. Comments off.

Marc Faber (Dr Doom): “Obama makes Bush look like a genius”

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January 22, 2010. Tags: , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Popular Culture, Unemployment Statistics, Wall St. Comments off.

Update:Marc Faber, Dr Doom, agrees with MiM; Christina Romer on stimulus bump in GDP; 3Q GDP in up 3.5%;Market Mover Thursday: 3Q GDP 8:30am EST..

UPDATE: Well! The original Dr Doom Marc Faber himself agrees with MiM’s analysis of the GDP and even uses the drunk analogy we used! Go read the whole thing!:

(…)Faber pointed out that there is currently a tug-of-war between the government and corporations and consumers. The government is pushing corporations and consumers to increase leverage, while they try to reduce borrowing in the wake of the financial crisis, he said.”If you have a drunk and he is drunk, you try to solve his problem by giving him more … this is role of the government. In my opinion this worked very badly,” he said…

…Bernanke only ever targets core inflation, Faber pointed out. But that strategy misses the point and it was the main cause of the current crisis, he said.

“How many people in this room can live without food and energy?” he asked a packed conference hall at the World Money Show. “Maybe at the Federal Reserve,” he added….

Reminder of the stimulus impact on this number and its return to zero in 2010 courtesy of Calculated Risk by way of Team TOTUS itself:

From Christina Romer, Chair, Council of Economic Advisers in Testimony before the Joint Economic Committee: From Recession to Recovery

In a report issued on September 10, the Council of Economic Advisers (CEA) provided estimates of the impact of the ARRA on GDP and employment. …

These estimates suggest that the ARRA added two to three percentage points to real GDP growth in the second quarter and three to four percentage points to growth in the third quarter. This implies that much of the moderation of the decline in GDP growth in the second quarter and the anticipated rise in the third quarter is directly attributable to the ARRA.

Fiscal stimulus has its greatest impact on growth around the quarters when it is increasing most strongly. When spending and tax cuts reach their maximum and level off, the contribution to growth returns to roughly zero. This does not mean that stimulus is no longer having an effect. Rather, it means that the effect is to keep GDP above the level it would be at in the absence of stimulus, not to raise growth further. Most analysts predict that the fiscal stimulus will have its greatest impact on growth in the second and third quarters of 2009. By mid-2010, fiscal stimulus will likely be contributing little to growth.
emphasis added

The impact on GDP will be smaller going forward, and according to Dr. Romer, the impact will be around zero by mid next year, and will be a drag later in 2010 (as stimulus is reduced).

Update: El Rushbo on shenanigans with the stimulus job numbers:

Courtesy of therightscoop

Update: Diane Swonk on CNBC notes 1.7% of this GDP came from Clunkers. Rick Santelli agrees with MiM, it is a number driven by inventory builds and clunkers, it is less than 2% in reality and it is unsustainable without govt spending…GDP is important in part because it traditionally means you know JOBS. this is NOT a job creating GDP recovery number, this is a head fake, 4Q will have the homebuyer tax credit bump too, 1Q 10 2Q 10 are the real ones to watch and ONLY if the govt STOPS the Keynesian spending which IS NOT WORKING, THERE ARE STILL NO JOBS!

zombiebull

Ride Zombie Bull Market Ride!

Update: Data in: 3Q GDP up 3.5% (clunkers, home credits, inventory builds,) MiM is still predicting a double dip, we are right on schedule…UE claims higher than expected…I predict a slew of speeches from Team TOTUS patting themselves on the back for what is IMO a fake number driven by government intervention with ridiculous spending programs like clunkers and homebuyer credits. When they are producing  jobs and actual sustained durable good orders and retail sales THEN I will call it a recovery.

But we will be forced to listen to TOTUS patting himself on the back for a while first, ugh. And when it collapses AGAIN (I predict the double dip in  1Q or 2Q 2010 depending when the WH runs out of spending programs as the bond vigilantes force rates higher and the Fed either wakes up and tightens or lets hyperinflation kill the consumer) will TOTUS then re-blame GWB?

-FOX is reporting taxpayers spent 24,000 per frakkin clunker, unreal (Edmunds.com). FOX notes the Govt waits one hour after GDP release to talk about it so enjoy your TV while you can, lol.

CNBC:

The U.S. economy grew in the third quarter for the first time in a year as consumer spending and investment in new home-building rebounded, data showed on Thursday, unofficially ending the worst recession in 70 years..

..Initial claims for state unemployment insurance declined, though the number was higher than expected, to a seasonally adjusted 530,000 in the week ended Oct. 24, the Labor Department said. Analysts polled by Reuters had forecast claims to fall to 521,000 last week from 531,000.

The Commerce Department, in its first estimate of third-quarter gross domestic product, said the economy grew at a 3.5 percent annual rate, the fastest pace since the third quarter of 2007, after contracting 0.7 percent in the April-June period.

The growth pace in GDP, which measures total goods and services output within U.S. borders, was above market expectations for a 3.3 percent rate. The economy last grew in the second quarter of 2008…

(more…)

October 28, 2009. Tags: , , , , , , , , , . Economy, Finance, Housing, Obama Administration, Politics, Wall St. Comments off.

Marc Faber predicts Zimbabwe-like hyperinflation for US economy…

Sadly I agree, I think Bernanke will be replaced by Larry Summers and if so, Summers will cave to political pressure unlike say Volker in the Bush I era, and he will fail to raise rates or sell MBS’ when necessary, thus we will hit it the hard way, roll a hard 6 as Adama would say….

Smoke ’em if you got ’em, it’s gonna be a looooooong rough patch..

At the very end here of Part 2 of the interview Faber is 100% sure of hyperinflation, continues into Part 3. ..

(more…)

May 28, 2009. Tags: , , , , , , , , , , , , , , , , . Battlestar Galactica, BSG, Economy, Finance, Obama Administration, Politics, Popular Culture, TARP, Taxes, Uncategorized, Wall St. Comments off.

Market Update: Wearin’ O’ the Green…

irishbear

The averages wearing Bear Market Rally green today with 29 minutes of trading to go to the close…

DOW now up 140 to 7358; S & P up 19 to 772, NAS up 44 to 1449…

and MiM is still buying GLD :0), maybe we should all go in on a farm with Marc Faber, I hereby call the top on the Pink Necktie market BTW…

And of course, Jim Rogers has good news as well:

(more…)

March 17, 2009. Tags: , , , , , , , , , , , , , . Economy, Finance, Labor Department, Obama Administration, Politics, TARP, Taxes, Uncategorized, Unemployment Statistics, Wall St. Comments off.

Market Forecasts: Whitney: 2009 will be worse for banks; Faber: Treasuries a ‘Disaster waiting to happen’

Meredith Whitney is IMO the best banking analyst on the street

CNBC:

She predicted “breakups and M&As on a grand scale” as the industry seeks to remake itself in the face of all its capital pressures.”I don’t think this year is going to look any better than last year,” Whitney said in an interview Tuesday on CNBC. “In fact it will look worse because there’s so much credit coming out of the system.

As some have been predicting the worst may be over for the banking sector, Whitney countered that many of the statements about some of the big banks showing profits ignore the burden that additional writedowns will pose through the year. In particular, she said Citigroup’s statement that it had turned a profit the first two months of 2009 might came back to haunt it once a fuller picture was presented.

As a solution to some of the banking system’s woes, Whitney said the government should focus less on ever-changing rescue plans and instead start helping smaller institutions ramp up their community lending to local businesses and homeowners.

Airtime: Mon. Mar. 16 2009 | 6:43 PM ET

Bet on exploration companies in the mining sector that have strong backers, suggests Marc Faber, editor & publisher of The Gloom, Boom & Doom Report. He explains his investment rationale to CNBC’s Martin Soong & Sri Jegarajah.

CNBC :

The Federal Reserve has no option but to start buying Treasurys as the government’s needs for financing are huge, but the government bond market is a disaster in the making, Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, told CNBC.

“Well I think other central banks have done it already around the world but basically what it amounts to is money printing and in fact I don’t think that it will help the bond market at all in the long run,” Faber told CNBC’s Martin Soong.

“Yields have already backed up pretty substantially and I tell you, I think the US government bond market is a disaster waiting to happen for the simple reason that the requirements of the government to cover its fiscal deficit will be very, very high,” Faber said. “The Federal Reserve will have to buy Treasurys, otherwise yields will go up substantially,” he said, adding that as their reserves were dwindling, foreign investors were likely to scale down their purchases.

But there will be a time when the Federal Reserve will have to increase interest rates to fight inflation, and it will be reluctant to do so because the cost of servicing government debt will rise substantially. “So we’ll go into high inflation rates one day,” Faber said.

“I think we may still have a rally (in the S&P) until about the end of April and probably then a total collapse in the second half of the year sometimes, when it becomes clear that the economy is a total disaster,” Faber said.

March 17, 2009. Tags: , , , , , , , , , , , , , , , . Economy, Finance, Obama Administration, TARP, Taxes, Uncategorized, Unemployment Statistics, Wall St. Comments off.

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