Faber: Nations Will Print Money, Go Bust, Go to War…We Are Doomed

[Albert]

Obviously nobody has to do this, but it might be a good exercise for some of the more intelligent posters earlier in the thread.
I would like to see a graphic or flow chart of the causes and consequences that we are talking about with regards to these economic predictions. For example if step 1 is increased money supply M2 or M3(not sure if they are reporting that anymore), then the next step might have an up arrow in front of asset prices or consumer confidence or bulging eyeballs... whatever. That way each step can be dissected to see the fault lines and examined for it's plausibility.
As it is, it feels like trying to catch rain in your hands where nothing sticks and there is so much information raining down all around you.
A

 

[ElCubano]

Quote from peilthetraveler:

The psychological damage of a single nuke hitting your country is enough to cause massive unemployment. A mass exodus from the cities will further hurt productivity as everyone wonders who's city is next. A nuke could collapse an economy and cause starvation. A couple nukes hitting our farmlands will cause us all to starve.

A couple of nukes would cause unheard of chaos to say the least..3 planes changed the way we now live.

 

[bearice]

I do not think nuclear weapons can destroy the world/civilisation/humanity. People fear nuclear weapons for no reason at all.

 

[bearice]

USA has deployed 200 nuclear weapons in Europe: Wikileaks

THE US has deployed 200 tactical nuclear weapons in Europe, mostly in Belgium, Holland, Germany and Turkey, the WikiLeaks’ files claim.

The four nations were long suspected of hosting warheads but Nato and the governments involved have refused to confirm reports. Nato yesterday condemned releasing nuclear secrets as “illegal and dangerous”.

http://www.express.co.uk/posts/view/214778/WikiLeaks-claims-200-nukes-in-Europe

 

[ElCubano]

Quote from bearice:

I do not think nuclear weapons can destroy the world/civilisation/humanity. People fear nuclear weapons for no reason at all.

While it may not wipe us all out, it could very well send us back into the stone ages causing massive panic, famine, disease. Trust me thos nukes are not going to land in middle Montana...

 

[Hydroblunt]

Quote from Ed Breen:

The problem with Faber's analysis, and the austrian interpretation generally, regards the reliance on an obsolete interpretation of the quantity theory of money. The principle of the quantity theory, that an increase in the supply of base money above demand leads to inflation, is an 18th century principle that assumed that all base money was tangible and in circulation. It was a gold based theory. Faber like many fails to apply that principal to the modern reality of a post gold fractional reserve banking system where 'money' is no longer tangible or in circulation. Today there is really only about 1 Trillion actual U.S. dollars and coins that actually circulate. Today, there is no printing and there are no real dollars such that you could gather them all and touch them or look at them. Today, the dollar can only be understood as a unit of account in a master international digital ledger program. Accounts we call money are expanded and destroyed everyday and you cannot understand the quantity of money independent from the ledger system that by its nature also includes credit. The quantity of base money in a fractional reserve banking system cannot be seperated from private credit formation. This is what Faber doesn't fully understand.

I think you're being kinda Captain Obvious, not to the general public, but to those who stay familiar with the issue. I'm pretty sure Faber fully knows that today's monetary supply is actually digital, not paper. 'Print money" is just a term, not to be taken 100% literally, but it is still accurate.

As a side note, whenever more money/debt is created by the Fed, a certain % is printed by the Treasury.

Regardless, Faber's general conclusions are on point. You can try to debate it with long winded rationalizations that general equate to "this time it is different", but you will be able to avoid reality for only so long.