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Marc Faber On Central Banker Actions: "Insane People Don't Realize They're Insane"

Tyler Durden's picture






Will the Fed stop printing?


Never end?


On the money-printers coming to their senses?


On the Un-Taper:




On China:



The Chinese are not completely dishonest, but if you read between the lines of the hard-core statistics in China, in my view, they don’t match with the public statistics about GDP growth. The economy is growing at say, maximum 4 percent per annum, not 7.5 percent or 7.7 or 7.6 percent.

On the fallacy of central planning:

...we know what the result was of Stalin’s economic policies and so forth. The planning economy is a complete failure. But now, recently, they announced that they would also implement some macroeconomic policy decisions in structuring interest rates and monetary policies. They really think that they can steer the economy and that they can steer markets. Milton Friedman has written about this extensively. He thinks the introduction of essentially the Federal Reserve and with fiscal measures, the economic volatility in the US in the 20th Century was much higher than in the 19th Century, and this is correct.


One of the goals of so-called Keynesian policies would be to stabilize economic activity. In other words, you don’t have huge business cycle fluctuations and you have relative price stability. But please, tell me, where is economic stability nowadays, and where is price stability? Oil prices move up and down like crazy, home prices move up and down like crazy, and the stock market does the same. There’s far less stability than there ever was before, complementary of the Federal Reserve and essentially of the US Treasuries fiscal policies.

How does it all end?

I’m not thinking. I’m convinced. It will end very badly. It doesn’t mean it has to be tomorrow..


I think that is a very good question. Like the aristocracy in Europe in the 18th Century, they didn’t give up just the power. They kept that power, same as the aristocracy in Russia in the 19th Century. They didn’t give up the power. Eventually, they were slaughtered. I believe what will eventually happen is that you have a financial collapse of dimensions so bankers can’t do anything.


I don’t know what the end game will be, and whether we’ll still be alive or whether we’ll be in wars or in revolutions as the worst. That’s why I want to hold some physical gold.

On Gold confiscation:

Yes, that’s a good question. I wonder what will happen one day. Let’s take the worst-case scenario. We have either a social unrest, a revolution, or war. Governments decide, “Oh, the price of gold is going up substantially, let’s take it away from people.” In other words, you expropriate it.


There’s no point to hold physical gold somewhere in the sky. I would hold some physical gold in my proximity. In other words, I own some in Thailand and some in Hong Kong. I still have too much in Europe, but over time, I will move it to Asia.


I think it will, at that stage, not matter very much where you hold your gold, except it may matter where you hold your gold in terms of sovereign state. My sense is that the Asian countries are less likely to take the gold away than Western countries.

The full transcript available here at Sprott Money News.


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