Marc Faber: “Fed’s Neo-Keynesian Clowns… Are Holding The World Hostage”

“There is nothing safe anymore, because the money-printing distorts all asset prices,” is the uncomfortable response Marc Faber gives to Thai TV during this interview when asked for investment ideas. Faber explains how we got here “massive money-printing and ZIRP creates a huge pool of liquidity that does not flow evenly,” as it washes from Nasdaq stocks to real estate to emerging markets and so on. Each time, “the bubble inflates and then is deflated as the capital (liquidity) floods out.” The Fed, based on the doubling of interest rates since they began QE3 “has lost control of the bond market,” Faber warns; adding that while he expects some “cosmetic tapering,” the Fed members and other neo-Keynesian clowns will react to a “weakening US and global economy,” and we will be a $150 billion QE by the end of next year, as the world is held hostage to US monetary policy.

The interview is interspersed with Thai translation but is well worth the time (starting at 1:25):

“There is nothing safe anymore, because the money-printing distorts all asset prices,” is the uncomfortable response Marc Faber gives to Thai TV during this interview when asked for investment ideas. Faber explains how we got here “massive money-printing and ZIRP creates a huge pool of liquidity that does not flow evenly,” as it washes from Nasdaq stocks to real estate to emerging markets and so on. Each time, “the bubble inflates and then is deflated as the capital (liquidity) floods out.” The Fed, based on the doubling of interest rates since they began QE3 “has lost control of the bond market,” Faber warns; adding that while he expects some “cosmetic tapering,” the Fed members and other neo-Keynesian clowns will react to a “weakening US and global economy,” and we will be a $150 billion QE by the end of next year, as the world is held hostage to US monetary policy.

The interview is interspersed with Thai translation but is well worth the time (starting at 1:25):
http://www.zerohedge.com/news/2013-09-22/marc-faber-feds-neo-keynesian-clowns-are-holding-world-hostage
Parts 2 & 3 of interview:

http://www.youtube.com/watch?v=2-gv8hDmid4&t=0m43s (part 2)

“There is nothing safe anymore, because the money-printing distorts all asset prices,” is the uncomfortable response Marc Faber gives to Thai TV during this interview when asked for investment ideas. Faber explains how we got here “massive money-printing and ZIRP creates a huge pool of liquidity that does not flow evenly,” as it washes from Nasdaq stocks to real estate to emerging markets and so on. Each time, “the bubble inflates and then is deflated as the capital (liquidity) floods out.” The Fed, based on the doubling of interest rates since they began QE3 “has lost control of the bond market,” Faber warns; adding that while he expects some “cosmetic tapering,” the Fed members and other neo-Keynesian clowns will react to a “weakening US and global economy,” and we will be a $150 billion QE by the end of next year, as the world is held hostage to US monetary policy.

The interview is interspersed with Thai translation but is well worth the time (starting at 1:25):
http://www.zerohedge.com/news/2013-09-22/marc-faber-feds-neo-keynesian-clowns-are-holding-world-hostage
Parts 2 & 3 of interview:
http://www.youtube.com/watch?v=2-gv8hDmid4&t=0m43s (part 2)
http://www.youtube.com/watch?v=qpnT_OWLmXU&t=0m32s (part 3)
Parts 2 and 3 of this Marc Faber interview, continuing the above, are also on YT
Great to see Marc talking in Thai with his hosts … typical European, learns the local language
Amazing Marc Faber memory for dates, like nov 28 2008 bottom in Thai stock market …
Highlights from parts 2 and 3:
Part 2
Marc Faber talks about need to diversify – real estate, corp bonds, cash, gold, equities
You don’t have excess credit problem in Thailand but 100-200 trillion unfunded liabilities in US are the real US debt condition
Marc trusts local Thai banks, relatively solid, but not international banks … “We saw what happened in Cyprus. The whole world is like Cyprus, even worse.”
Crash / reset will arrive, doesn’t know when, within next 5 years most likely, but when it comes gov’t will have no money to assist like before
Part 3
10x real estate appreciation in some parts of Thailand, 3x or so around Marc’s home base of Chiang Mai
20% of assets should be in physical gold, and not paper gold
Thai safe deposit box great, but do not keep gold inside America in any form
Don’t speculate in gold, just buy some every month
He is a friend of Eric Sprott, Marc is on his board
Understands the suspicion there is no gold Fort Knox … talked about German gold, 5 trips in a cargo 747 would return it, plenty of cargo planes available, yet it will take 8 years to get that gold
Yet Marc doubts gold price manipulation, acknowledges that China wants to intensely buy gold
Marc owns corporate bonds from Russia, Kazakhstan, India
Notes corporate bonds have an equity character, unlike gov’t bonds, which often move opposite from equities in downturns, but corporates tend to move in the same direction, tho not dropping as much
Re currency, Marc likes Malaysian ringgit, and Singapore dollar for longer term,
“Gold is a currency, the only honest currency”
Interviewers very current, raise with Marc the Jim Willie issue about the BRICS developing a global non-dollar system
Marc agrees, dollar has greatly diminished and is sinking … China now exports more to resource producers, than to the US … Generally countries starting to trade more with China than with America
Peak of American power and prosperity was late 1950s / 1960s
bank guy in Brussels