Marc Faber The FED will continue Printing Money

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Marc Faber Says GM’s Debt Conversion Is Key to Restructuring 27 Apr 2009 MarcFaberChannel.Blogspot.com for More http MarcFaberChannel.Blogspot.com http MarcFaberChannel.Blogspot.com http

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26 Comments.

  1. Well they did their best to distract us from the ball … bringing us back to Swine Flu at every turn (yawn) …
    but they did succeed in giving us that anchor – she is hot hot hot – anyone know her name?

  2. one big problem with the scheme is that China is not on board with the it, and there is a possibility of confrontation. I’ve heard Americans saying that if China tries to sell its US debt, it would be like a nuclear option. So China can either hold their US treasuries and see them lose 90% of their value, or sell them and have the US call it war.

  3. they want inflation because right now their OTC debt is underwater and a liability. With inflation everywhere (including housing for example), that debt would again have value. If countries protest the inflation, they know that debt will remain worthless, and the holders of that debt will be pissed – not just the financial guys who bought it, but the pensioners who depend on it.

  4. Yes that is why one should start saving and convert one’s savings into precious metals, agricultural land and other hard assets as Marc Faber suggests…

  5. But the rest of the world would be pissed if the US debased its dollar and would dump it as the reserve currency. to avoid that, the government and wall street cooperated in a scheme to spread hundreds of Trillions of US dollar denominated debt around the worlds. That way, everyone around the world (at least financial people) want inflation.

  6. tell me if this sounds like one good reason for the OTCD credit bubble.
    Future unfunded liabilites of the US in the next decade will be 95 Trillion dollars.
    45T of that socsec and medicare. Right now those programs are in surplus and keep deficits down. In the next decade they will add to the deficit. So around 10 years from now they will require 5 to 9 Trillion in tax to pay.
    Today annual income taxes collected is 1T, total taxes 2T. So the US needs massive inflation and fast.

  7. Depends if you are conspiracy theorist then it is intentional, if you are a pragmatist then it is an opportunity…. I was a conspiracy theorist before and it did not do me any good financially…. Once I turned to the pragmatic side, I made around 7k by trading stocks….

  8. do you believe the mess was accidental, or intentional?

  9. Yes but common men like us can listen to Marc Faber’s wisdom and try to profit from this mess created by the financial industry…

  10. the losers getting bailed out are the bankers who created all the toxic debt – the CDSs.

  11. no, the problem is that it is the financial system who rules, not the government. The financial system is far too powerful. They set up the means to pull off a massive financial fraud, they got rich, took off, and left the world with one big mess.

  12. The problem is the loser will come running to govt for help and govt throws tax payer money at him…instead of allowing him to go down…

  13. right, and the ones who are going to lose are the many pension funds around the western world who were desperate for yield and trusting of credit agency ratings on the CDOs they bought, which were “backed up” by the fraudulent CDS that banks now are trying to get off their balance sheets on to the tax payers or some other suitable dupe – these are the toxic assets, or their newer more comfy name – legacy assets that are in the news.

  14. OTC derivative transaction is between two willing parties….based on mutually agreed terms and conditions… Obviously one will lose and one will win just like any other trade…

  15. For example, if you are issuing insurance, like CDS, on another financial obligation, and you have no hope in hell of paying off that insurance, you are committing fraud – AIG for example.
    Now, if you are being technical and arguing that no court will ever convict a banker or hedge fund manager of fraud, then I agree with you, because those people own America and they are above the law.

  16. derivatives like futures and options aren’t a fraud.
    OTC derivatives are a fraud, the biggest ever in history.

  17. Derivative industry is not a fraud…. Yes its future looks bleak… To insure your 10,000 dollar bond issued by xxxx, if I charge 100 dollar Credit Default Swap (CDS) fee….and start saying my CDS has a notional value of 10000….actually it is worth only 100… but my CDS derives its value from the asset which is worth 10000….

  18. they are worth a miniscule fraction because they were a massive fraud and have no market now. The number is 650 Trillion, it was 50 trillion about 8 years ago, they were called weapons of financial mass destruction in 2002, and in 2008 they caused massive financial destruction.

  19. Yes they need to be derided… but most people have this idea that 500 trillion worth of derivatives floating around the world…. which is not true…. actual value of derivatives is a minuscule fraction of 500 T….

  20. you don’t think OTC derivatives are deserving of derision?

  21. GaiusIuliusTaberna

    Government control over currency through central banks can be a good thing provided the people in the government are competent, however it can be and is very bad when they are not.

    I think the lesson here is to be much more careful in the future about the qualifications of the people we elect to make financial policy.

    Oh, and don’t listen to the conspiracy nuts who think evil Jews are tying to take over the world visa vi the fed. They get way too much exposure around here.

  22. Printing money if done properly, can actually be a good way to break a bad equilibrium where everyones is looking at each other to do something – like Keynes said. Unfortunately, when govs tend to print money they tend to do it stupidly to prop up lost causes, bad gambles or even just for seignorage benefits, like now…I see a liquidity trap coming eventually.

  23. Because mainstream media is easy going info-tainment. The sheeple need some thing to focus our eyes on. Most US media is like this. Big bazongas and perfect barbie faces. Superficial vapid comments. But nice NILFs. News caster I’d like to …..

  24. Derivatives derive their value from another asset whose notional value may be 500 trillion…. That doesn’t mean the derivative is worth 500 trillion…. It is a very small fraction of the 500 trillion… The derivative industry started using the notional value to show that their industry is big… Now the same strategy is backfiring…. Now critics of derivative industry is using the large notional value to deride the industry…

  25. This is a really hot anchor….what is her name?

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