Over at Examiner, I reported on a recent interview that Marc Faber, publisher of the “Gloom, Boom and Doom” report, took part in with CNBC. He talked about the debt, the global financial system, how we lived beyond our means for nearly three decades and how we will have to pay it back. In usual Faber fashion, he did not hold anything back.
These dire warnings have been going on for quite some time but they are hardly ever listened to. Most of these warnings that come from the likes of Faber, Jim Rogers, Peter Schiff and Ron Paul are common sense, but for some reason or another, they are ignored. Why?
Anyway, without pontificating my didacticisms, here is a little bit of what Faber said Tuesday.
“The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year or even contract, and that is the reason why stocks, from the highs of September of 1,470 on the S&P, will drop at least 20 percent, in my view.”
“There will be pain and there will be very substantial pain. The question is do we take less pain now through austerity or risk a complete collapse of society in five to 10 years’ time? In a democracy, they’re not going to take the pain, they’re going to kick down the problems and they’re going to get bigger and bigger.”
“In the Western world, including Japan, the problem we have is one of too much debt and that debt now will have to be somewhere, somehow repaid or it will slow down economic growth,” stated Faber. “I think we lived beyond our means from 1980 to 2007, and now it’s payback period.”
The entire interview can be read about in this article. A brief excerpt can be seen below.