Gloom, Boom and Doom publisher Dr. Marc Faber warns viewers to prepare for the coming wealth destruction:
“Well, basically I think that the whole bailout and the money printing will not create long-lasting wealth, nor will it create healthy economic growth. And if I look at the world, then i see essentially well-to-do people that have done unbelievably well and I see the middle class and working class that hasn’t done well. And I think somewhere down the line we will have a massive wealth destruction that usually happens either through very high inflation, or through social unrest, or through war, or a credit market collapse. Maybe all of it will happen but at different times.”
“I would say that well-to-do people may lose up to 50% of their total wealth. They’ll still be well-to-do; instead of a billion, they’ll have say 500 million. But, I think there is a massive wealth destruction coming down the line. I’m not saying it’s coming tomorrow, but looking at the bailouts and the money printing, they have postponed the problems and actually made them larger in the sense that the government debt has increased dramatically, and somewhere a solution will have to be found for this government debt.”
“I think we have to think realistically that the debt contraction basically has been postponed, but huge debt is still there and still growing. You look at, say, student loans. I don’t believe that all the student loans will be repaid, ever.”
“I’m not necessarily saying hyperinflation will occur but I think that we can have first inflation in asset prices, as we had in the last 20, 30 years and then that asset prices will come down like the real estate market came down in the united states for residential homes. And what will be the trigger you never know for sure.”
Interview: Marc Faber On CNBC April 2, 2012:
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