Monday, June 27, 2016

BREXIT is a victory for Freedom

Brexit is a huge boon for Trump and a wake-up call to Hillary that ordinary people are sick and tired of being lied to and cheated by the crony capitalistic system. It sends a clear message to a sick political elite and useless Brussels bureaucracy, which can't retard economic growth enough with complex laws and endless regulatory hurdles that the working people have had enough.

We can only hope that more countries will opt out of the failed EU monster. I see only a good contagion.

Watch the video below for the Full reaction of Marc Faber on Brexit and market reaction.

Wednesday, June 22, 2016

Panama Papers conspiracy theory - Its an inside job

I have to laugh about this Panama Papers - because it's obvious, it's another hidden attack against Russia, the Russian government, and other wealthy people around the world. 

Of course, no American would even think of evading taxes, that would never occur to an American mind! 

But, the fact is simple - If I open a company on  the British Virgin Islands, in Panama, anywhere in the world, I have to declare the beneficial ownership. But, you don't have to declare the beneficial ownership in a Delaware company in the U.S.  So, it's a hypocritical act, once again, initiated by people in the U.S., who want, basically, to put down foreign regimes. 

It's like if FIFA was an American organisation, nothing would happen. But it happens that FIFA built up the biggest business in the world, which is soccer, and it happens that the World Cup will be played in Russia, and not in the U.S. - so, obviously, the target FIFA.

Monday, June 20, 2016

Paper money cannot preserve your wealth over time

I do not keep all my savings in precious metals, but, historically seen, cash has been a bad investment, and over time all paper money have lost their purchasing power. I hold some gold and silver, I am also on the board of directors of mining companies. I hold real estate, mostly in Asia, specifically in Vietnam. I hold some stocks - maybe 25% of total assets, and I hold some bonds in cash. So I'm diversifying, but an investor should realize that paper money will lose its purchasing power.

Thursday, June 16, 2016

Central Banks policy mistakes

There will be a museum, in future, of Great Central Banking Errors. One of them will be to have introduced negative interest rates - in Europe and also in the other parts of the world, notably in Japan - and the other one, prominently displayed at the entrance of the museum of the Central Banking Policy Mistakes, will be a bust of Mrs. Yellen, a huge bust, because they've slashed the Fed Fund rate to next to zero in December 2008, and by 2010-2011, the economy was actually recovering quite well. That is when they should have increased rates, somewhat. But they waited, Mrs. Yellen, she waited precisely until December 2015, when it was obvious that the economy, and the global economy, was decelerating very badly, and most likely, entering a recession. So, in other words, she is increasing rates, exactly at the time when you shouldn't' be increasing rates.

Wednesday, June 15, 2016

Bernie Sanders is quite an intelligent man but has misguided views of the economy

I don't support any of the available candidates, but if I had to make choice - in other words, if you put a gun in my face and say: "Marc, you must choose someone, either Hillary Clinton or Donald Trump" - for sure, I would choose Donald Trump, because he's a businessman and he has some common sense and he's an outsider and not necessarily supported by the Republican party. 

If you look at her [Hillary Clinton] period during which she was Secretary of State, the U.S. committed several aggression's in the Middle East, including, also, the invasion of Libya. Libya, which was probably, the only properly functioning African Economy. So, I would say that her achievements with nation building have been a catastrophe. And then, if you put yourself into the shoes, of, say, Mr. Putin, or of the Chinese - she declared while she was Secretary of State, America's Pivot to Asia. Wouldn't you consider that to be an aggression? China has never started a war, they were always drawn into wars by foreign powers, and now the U.S. acts in provocation of China.

My favorite candidate in terms of intellect - unfortunately, with misguided views about the economy - but in terms of intellect, is, actually, Bernie Sanders. He's quite an intelligent man who already in 2003 attacked the U.S. Federal Reserve, at that time Mr. Greenspan, that his monetary policies have created wealth for Wall St. and for people that own assets, but have done very little for ordinary people in the U.S. - and this has been now proven to be correct, and even Mr. Greenspan, later, in 2008, in a Congressional Inquiry, accepted the fact that his models have been flawed.

Monday, June 13, 2016

USA economy similar to having a Botox surgery

I am bearish about the world. And I think the US. stocks is more than fully priced and is vulnerable to a significant decline. 

The economy in America is like botox surgery. You create, on the surface, something that looks quite okay, but behind the scene, it's not so okay. If we look, precisely, at, say, labor statistics: so, jobs in the manufacturing sector are being cut, the manufacturing sector is no longer very important in the U.S., but jobs in leisure and hospitality, barmen and waiters are going up strongly. Full-time jobs are being reduced and part-time jobs are being created. So, if you really analyze the figures - including, also, the figures that come out about the budget deficit, in other words, the fiscal stimulus and so forth - they all look horrible! 

Superficially, the U.S. will tell you: "Well, our deficit has shrunk from over a trillion dollars to, say, $450 billion.  But, I am adding the government debt every year, and by that measure, last year, the deficit was close to a trillion dollars. The government debt since Obama became president 8 years ago, has gone from $8 trillion, to now over $19 trillion. These are the facts.

Wednesday, June 8, 2016

Stocks are kept artificially high

I think stocks are still very vulnerable. A few shares such as Amazon have kept the indices at a relatively high level. 

Monday, June 6, 2016

EU is an anti-democratic institution says Marc Faber

First of all, devaluations in the U.S. are very high. If you measure price to sale of the S&P. My sense is that there are much better values overseas.

So I say for the investor who has patience now, it’s a much better opportunity to invest in Europe and in emerging economies than say in the US. 

On Brexit
I happen to think that a Brexit would be bullish for global economic growth

Thursday, June 2, 2016

War is good for defense related stocks

In principle, nobody wants war, but who knows? Under Obama, I don’t think it will happen. But in future governments, who knows? I hope it will not happen, because war is horrible, and the Western world, it does not have the spirit to fight wars anymore. You look at the millennials. How many of them do you think will be on the front-line. I have to laugh when I see all these Facebook clowns. I don’t think they’re committed to it. If you think they’re going to fight the war. 

They’ll send some soldiers, mercenaries, and the mercenaries are basically out to make money, not to fight really wars for the purpose of an ideal or a purpose. And so the outcome is going to be disaster. If the US couldn’t do any better in Afghanistan and Iraq, what do you think would they achieve against China or Russia?

It’s going to be a disaster, but for defense stocks, it may be good. For gold, it may be good. I don’t know. But I’m actually happy to be 68, so I’ll pass away in, say, 10 years time. Don’t have to watch the disastrous economic and geopolitical decisions of the Western world. Sometimes it depresses me. Believe me.