Thursday, May 29, 2014

This could cause the stock markets to drop

My view is that if the bears on bonds are right and say the 10 year treasury note indeed goes to 4 percent, I think the stock market will really tumble. 

Wednesday, May 28, 2014

Monday, May 26, 2014

Wednesday, May 21, 2014

1987 Style crash likely within 12 months

I think it's very likely that we're seeing, in the next 12 months, an 87-type of crash... And I suspect it will be even worse.

via CNBC Interview

Monday, May 19, 2014

India should have smaller governments not bigger governments

It's a big issue globally because we live in a world where everybody knows bureaucracy is bad for business and small businessman suffers under the bureaucracy, whereas the large corporations hire lawyers, auditors, and lobbies where they influence government's decisions and regulations.

The media has brainwashed the electorate to expect the government to do something. The best economic policy of any government is to do nothing, but reduce the size of the government, reduce the size of the laws, and reduce the size of regulations. Though in today's social thinking it's difficult to implement. 

Thursday, May 15, 2014

Marc Faber latest May 2014 interview

Doctor Marc Faber talks to CNBC about his latest views on the markets

Monday, May 12, 2014

Marc Faber on India economic growth predictions

A while ago, I thought India was still growing at 8 per cent-9 per cent according to published statistics. 

I think the statistics were overstating growth because they were understating the increase in cost of living and understating inflation. 

Now, going forward, I think if India can grow at 4 per cent-5 per cent per annum, that will be quite good.

Thursday, May 8, 2014

Rest of 2014 best investment maybe Cash

I dont see any assets that are attractive. The most under appreciated asset is cash. Nobody likes cash. On cash the next 10 years you will probably earn zero. 

Mrs Yellen is a money printer like all the others and she will make sure the dollar continues to depreciate in real terms. 

For the next six months maybe cash is the most attractive investment.

Monday, May 5, 2014

How Russia and Crimea affects Asia

Crimea moving to Russia gives essentially a signal to China that one day they can also move and seize some territory that they perceive belongs to them.

Thursday, May 1, 2014

Marc Faber worries about future of global labor market

My friend Walter Molano argues that, “A rash of new forces is causing serious dislocations to the global labor market, which have dire implications for future political and social stability.” Molano points out, there will be a growing part of the population who will become marginalized because of their lack of specialized skills. 

I am not suggesting that the lack of specialized skills is the only reason for the decline in the US Labor Share of National Income because lower wages and less regulation overseas, massive layoffs in order to boost corporate profits, easy monetary policies, etc. also played their part. 

Fortunately, as Molano opines, there will “always be the technicians and engineers needed to design the machines” as well as the professionals such as doctors, dentists, lawyers, architects, workers, etc. with distinctive abilities who will be able to capitalize on the transformation process. 

However, the question is how to acquire these “special skills” in order to compete successfully in an environment of serious global labor market dislocations. So far, the response of people has been “university education.” 

But in my opinion, not every higher education will prepare young people sufficiently in order to compete successfully in the current challenging labor market environment.

My father’s view was that I would have to work all my life and that to spend a few years at University - provided I qualified - would “inflame” my intellect and provide me with the opportunity to decide in what field I would spend the rest of my life.

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