Marc Faber Speaks – We Listen

This morning as I was doing my usual perusing of news, blogs, and assorted charts to gain perspective on golds current retraction I ran across a Marc Faber interview. Dr. Marc Faber is often referred to in this blog for his no nonsense approach to finance especially in areas concerning Gold & Silver.  What struck me with what follows is Faber’s ability to cut through the Wall-Street/Fed jargon and call them out as the architects of a decades long financial debacle.

So now with out any more gliding of the lily or further adieu – Dr. Marc Faber as reported on CNBC:

‘Very Muted Growth’ Coming for Next 10 Years: Faber

Published: Tuesday, 23 Aug 2011 | 10:36 AM ET
By: Jeff Cox Staff Writer

Both the U.S. and Europe are facing a decade of slow growth brought on primarily by the blunders of central banks, noted doomsayer Marc Faber said.

Investors should protect themselves by buying plenty of physical gold and putting it in a secure location, preferably outside the U.S., the author of the Gloom, Boom and Doom newsletter told CNBC.

“If I look at the politicians both in Europe and the U.S., I don’t think that prospect (for growth) is very good,” he said. “If I also look at the entitlement system and the government expenditures and the fiscal deficits and the debt overhang, I think for the next 10 years we’ll have very muted growth in the Western world and standards of living for the average household will continue to decline.”

In other words, he said, the next 10 years are likely to be much like the previous decade.

“I think we never really came out of the recessionin many different sectors of the economy,” Faber said. “If you look back to say 1999 to today, the U.S. as an economy, macroeconomically speaking, is of course much worse off than in 1999—courtesy of the Federal ReserveI may add.”

Many prominent economists have joined Faber’s dour outlook for the U.S. economy, at least in the short term.

Goldman Sachs has cut its forecast for growth to 1.5 percent for the year, and other parts of the world are experiencing slowdowns, as well.

In such a slow-growth environment, Faber prescribed a diversified mix for portfolios—25 percent to 30 percent in stocks, 20 percent to 30 percent in physical gold—”in a safe deposit box ideally outside the U.S. in various locations” because “I don’t trust anyone”—some cash, and up to 30 percent in real estate, particularly in Asia.


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