Hyperinflation Could Hit US In 5-10 Years: Marc Faber

Quote from Johno:

"In your opinion," what would these safer hard assets be"?
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Answer part 2.

I would guess that business inventory might be exempted from an across the board asset tax, as taxing inventory would put a lot of businesses under during a period of time that they want to maintain employment.
 
Quote from ipatent:

Libertad, that is a good analysis.

The problem now is that the debt overhang, which was excessive even in a 70T economy, still largely exists in the 40T economy.

This debt level is not sustainable. Most of it needs either to be liquidated (defaulted on) or inflated away.

In the 1930s liquidation happened by banks and institutions failing. Depositors who were unlucky enough to do business with failed banks lost their money. However, we live in an entitlement society today where this is not permitted to happen.

There is going to be a huge default, and they know it. They are going to try to manage it in a way that it is as politically palatable as possible in order to preserve the interests of the ruling elite. This probably means creating a national emergency and blaming it on foreigners somehow. One way or another, you are not going to be able to protect your money by keeping it in conventionally safe investments like MMFs and CDs.

The money that Ma and Pa savers think they have is really the end of a long debt chain that is coming apart. The system has to suck it back in one way or another. You will have to be very clever to preserve the present purchasing power of that money.
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Good point of view....


US=GM....everyone knows the legacy costs/debts have got to go through default....

And there is nothing they can do about it.... using traditional and erroneous means....

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The inevitable is just that....the black horse is black.....not white....
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Why not cut to the chase and start to rebuild in such a way that globalization can happen in the best manner possible....

An exchange can be anywhere.....It is just the laws....

A few strokes of the pen....which is "somebody's job" should be taking place.....

But very mistakenly and sadly is not even being pondered....

One has to go it alone....

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True universal accounts are needed....all instruments....including plain jane short term debt of any/all central banks in currency of choice....at central banks' true rates....not levered forex nonsense....

With a few mouse clicks....one pawns off the worry of the local wacko politicos....

This needs to be a tax free highway....such that the wackos cannot manipulate incentives....

This is the only way globalization is going to work....
 
I am a US citizen. But these huge obligations have me wishing I had second citizenship somewhere else. But where??? Russia? Europe? China? Africa? A Muslim country? South America?

It looks almost like there is nowhere safe. The world economy is so interlinked, that the whole pile could come down.
 
Quote from TraderZones:

................ have me wishing I had second citizenship somewhere else...........
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I understand France is nice. Why don't you leave now!

:mad:
 
Quote from TraderZones:

I am a US citizen. But these huge obligations have me wishing I had second citizenship somewhere else. But where??? Russia? Europe? China? Africa? A Muslim country? South America?

It looks almost like there is nowhere safe. The world economy is so interlinked, that the whole pile could come down.
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Thus the need for true universal accounts that are un-encumbered....

Which is also the answer to replentished big numbers via the exchanges....
 
Quote from Debaser82:

The US is headed toward hyperinflation, and within five to 10 years it could have inflation rates of 10 to 20 percent, said Marc Faber, editor and publisher of the Gloom, Boom & Doom Report.

"In every society, when you have large fiscal deficits combined with easy monetary policies … the likelihood that you will have high inflation is very, very high," Faber said. "And it happens very quickly."

These numbers rise so speedily because the government "massively" understates the country's rate of inflation, Faber said. To get a true reading, he said, people need to ditch core inflation numbers and include CPI in their analysis.

"It’s a lie what they publish," said Faber. "If you underweigh education costs, and if you underweigh health care costs, then you come to a totally different result."


In such a volatile market, Faber said the safest place to invest is in equities or assets.

"I'm not very bullish about real estate prices in the U.S., but I'd rather be in real estate than in 30-year U.S. bonds."


http://www.cnbc.com/id/31450173
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Marc Faber lost money for his clients last year even though he supposedly predicted the meltdown. Hes not in HK anymore, must be working on new unburned cient base in Singapore. Might be a great analyst but certainly not a trader.
 
Quote from Copernicus:

Marc Faber lost money for his clients last year even though he supposedly predicted the meltdown. Hes not in HK anymore, must be working on new unburned cient base in Singapore. Might be a great analyst but certainly not a trader.
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If you stayed long almost anything you lost money last year.
 
Quote from Debaser82:

The US is headed toward hyperinflation, and within five to 10 years it could have inflation rates of 10 to 20 percent
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According to Faber's definition the US already was in a period of "hyperinflation" in 79/80 then (CPI was at 13.5%). Clearly, that wasn't hyperinflation if one assumes that entails price increases being "out of control". While there is no hard definition, Wikipedia suggests

In economics, hyperinflation is inflation that is very high or "out of control", a condition in which prices increase rapidly as a currency loses its value.[1] Definitions used by the media vary from a cumulative inflation rate over three years approaching 100% to "inflation exceeding 50% a month."
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But I guess a talking head like Faber enjoys the headlines and "hyperinflation" sounds so much more catchy for the media than "high inflation".

P.S. Why is he singling out the USA by the way? Ireland, UK, France, Spain, Italy, Portugal, Japan, Greece won't have hyperinflation? Some of these countries' outlook is much much more bleak than the United States'.
 
Quote from Copernicus:

Marc Faber lost money for his clients last year even though he supposedly predicted the meltdown. Hes not in HK anymore, must be working on new unburned cient base in Singapore. Might be a great analyst but certainly not a trader.
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Just who can buy into agriculture.....?

The winners in ag are going to be the vert and the horizontal integrateds....

The only thing keeping land out of the corps. are govt. subsidies.....US farmers have been socialized for a long time....

ie land prices kill renewable efficiencies....ie why solar thermal etc....

And in a 200 to $600 per month world ....who is going to pay up ?....

A rich man's stomach is 100X the poor man's stomach ?....
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Rogers has evolved into a book salesman....



Rogers literally talks his book.....and is becoming another Cramer....who really has nothing but Nielsen in mind....
 
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