The syrupy-voiced Eric King interviews the heroic Dr Marc Faber, who believes the U.S. government will raise the debt ceiling soon, and keep going with its imperial spending programme, because nobody ever wants to admit to failing.
Dr Faber describes the interesting Mexican stand-off where dollar holders dislike the euro and euro holders dislike the dollar, and the process where the bureaucrats who control these giant fiat currencies keeping postponing the consequences of their stupid past actions, by inflating both paper currencies.
‘Hold gold to protect yourself from these bureaucrats’, says Faber. As he said in another interview last week:
“All I can say, the risk today as an investor is not to own gold, but it’s not to own any gold. If you have no gold at all, I think you’re taking a risk. And my advice is simply every month you put some money aside and you buy a little bit of gold. Depending if you’re very rich, you buy every month a ton. If you’re very poor, you buy every month an ounce or whatever it is, or a gram. But every month, you accumulate. You don’t worry about the price. Look to it and you just buy every month a little bit. And your grandchildren will be very happy about that unless the US government takes it away. That is a possibility with Mr. Bernanke. You just look at him. He’s basically not a particularly honest character.”
Faber thinks that there will be much more monetary stimulus, from the politicians, trying to put off the necessary corrective pain from voters, until eventually a reset needs to occur, as it did with South America in the late part of the twentieth century. Before the great reset, governments will try to distract us with some Big Brother wars somewhere, before they eventually have to swap £100 notes for ‘One New Pound’, or something similar.
As with virtually everything the great man says, this interview is well worth listening to: