Marc Faber: Be Careful, The Chinese Economy May Crash

The celestial Maestro casts his all-seeing eye upon the world, and the world is found wanting:

Highlights:

  • Chinese economy may crash, and is certainly softer than published figures may suggest
  • This crash will effect all commodities industries and countries supplying China
  • Although deflation may come eventually to Europe, serious money printing is imminent to postpone hopeless problems
  • Real incomes of normal people cannot be increased by monetary inflation
  • War may be the chosen route out for western economies [The Krugman Model!]
  • Overspending, overborrowing, and overconsumption, encouraged by politicians, has got us into this mess
  • The larger government is, the slower economic growth is
  • Desperate governments will start to tax the overseas accounts of their tax serfs, or tax all their other assets (already paid for out of previously taxed income)
  • We no longer have free markets
  • Faber keeps his assets in these proportions; 25% Equity, 35% in Real Estate, 25% in Gold, the rest in Cash
  • If Faber could only invest in one asset, he would put it all in Gold

All Faberites will enjoy the interview, though alas, there’s nothing controversial about beer or other successful western industries.

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About Andy Duncan

An Austrian Internet Vigilante trying to live Outside the Asylum
This entry was posted in Faber, King World News and tagged , , , , . Bookmark the permalink.

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