Marc Faber Predicts 'Massive Wealth Destruction' Through Hyperinflation, Social Unrest, Credit Collapse Or War

"Marc Faber was on CNBC this morning, peddling his standard doom
He had two good lines:
The first was that the #1 question investors should ask themselves is not 'where can I make the most money' but rather 'where can I avoid losing the most money'?
He then predicted that the endgame of all this easing will be "massive wealth destruction" through some combination of hyperinflation, credit collapse, social unrest, and WAR!
Doom, boom, and gloom indeed.
For what it's worth, he didn't predict, exactly, when this is coming.
As for what investments he does like....
From CNBC:

"In Georgia, in Arizona, in Florida their property values will not collapse much more and will stabilize, so I think to own some land and some property, not necessarily in the financial centers but in the secondary cities, these are desirable investments relatively speaking."

at http://www.businessinsider.com/marc-faber-predicts-massive-wealth-destruction-2012-4#ixzz1qtNCp1UP

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Is There a Bubble in Treasuries? Both Sides of the Case; Explaining the 2011 Treasury Rally (It's Not What You Think); Where to From Here?

"People have been calling a bubble in treasuries for at least a decade. The shocking result, especially to hyperinflationists, has been a stair-step decline in yields for 30 years. That's quite a long time.

Here is a chart going back 20 years from Steen Jakobsen at Saxo bank in Denmark.

Click on Any Chart in this Post for Sharper Image

$TYX 30-Year Long Bond




Operation Print-Money-Like-a-Madman

Via email, Steen writes

I think higher interest rates are for real, and not a fluke.

The move down in US yields below its long-term channel was an unusual move - as can be seen in the above chart - 30 year US has been in solid down-ward slopping channel since 1980s. There have now been two breaks to the down-side: One in 2009 when the stock market crashed to 666 in the S&P - and now since 2011, when Fed initiated Operation Print-Money-Like-a-Madman with QE, QEII and Operation Twist plus “low rates forever”.

These moves were the exception not the norm, a function of the “unconventional measures” all the central banks has been pointing to forever.

We are entering an extremely dangerous period. Valuations are stretched, even my internal bull, Peter Garnry is getting conservative. The divergence is bigger and bigger – actually to me this is beginning (on charts) to look at lot like end of 2007 into 2008.
Let’s hope I am wrong, again, and this is merely a pause before the world is saved and we can all believe that more debts creates growth and reforms..."

at  http://globaleconomicanalysis.blogspot.com/2012/03/is-there-bubble-in-treasuries-both.html

Chris Martenson And Marc Faber: The Perils of Money Printing's Unintended Consequences

"Marc Faber does not mince words. He believes the money printing policies of the Federal Reserve and its sister central banks around the globe have put the world's currencies on an inexorable, accelerating inflationary down slope.
The dangers of money printing are many in his eyes. But in particular, he worries about the unintended consequences it subjects the populace to. Beyond currency devaluation, it creates malinvestment that leads to asset bubbles that wreak havoc when they burst. And even more nefarious, money printing disproportionately punishes the lower classes, resulting in volatile social and political tensions.

It's no surprise then that he's feeling particularly defensive these days. While he generally advises those looking to protect their purchasing power to invest capital in precious metals and the equity markets (the rationale being inflation should hurt equity prices less than bond prices), he warns that equities appear overbought at this time.

On Inflation

First of all, I do not believe that the central banks around the world will ever, and I repeat ever, reduce their balance sheets. They’ve gone the path of money printing and once you choose that path you’re in it, and you have to print more money..."

at http://www.zerohedge.com/news/chris-martenson-and-marc-faber-perils-money-printings-unintended-consequences 

Gold Going to Parabolic Top of $10,000 by 2012 For Good Reasons

"No wishful thinking here! As I see it gold is going to a parabolic top of $10,000 by 2012 for very good reasons - sovereign debt defaults, bankruptcies of “too big to fail” banks and other financial entities, currency inflation and devaluations - which will all contribute to rampant price inflation..."

at http://www.marketoracle.co.uk/Article20267.html

A Problem for the U.S. Dollar Worse than Debt

"$19.6 trillion. That’s the Treasury Department’s latest estimate of the national debt to reach by 2015.
The debt has many folks concerned, and rightly so. There is, however, a much bigger problem facing the country and the U.S. dollar.
 
You see, amassing debt is not good, but it’s hardly the end of the road for a government that’s still generally trusted by the financial community. For instance, Japan’s total debt is 181% of its GDP. That’s much larger relatively than Greece, Spain, Italy, or Hungary.
But while the debt has been attracting all the attention, the real risk to the value of the U.S. dollar is posed by the annual budget deficits. And a little known, tried-and-true equation shows the inflation is coming in a big way.
$100,000 a Second
In 2008 the great credit expansion came to an end. Companies going bust, personal bankruptcies soaring, and a general decline in economic activity has unleashed deflation on the world. The private sector had enough debt and, as a whole, didn’t want anymore.

The government, however, has stepped to keep the credit expansion going. The U.S. government is borrowing $100,000 a second to keep the bubble growing. And that’s where the problem lies.
The current budget situation is a tenuous one. Revenues are down and spending is up creating a massive deficit. Last year’s deficit came in at just over $1.4 trillion. The latest Congressional Budget Office (CBO) estimate of this year’s will be at $1.5 trillion.
And the trend is set to continue well into the future. The CBO’s estimates peg the total deficit spending over the next year to average $970 billion a year. And given the overly optimistic economic expectations including no recession, a record rebound in employment, and record low inflation and interest rates, the deficits will likely stay well over $1 trillion per year.
That’s where the real problem lies. As Peter Bernholz states in Monetary Regimes and Inflation: History, Economic and Political Relationships, “There has never occurred a hyperinflation in history which was not caused by a huge budget deficit of the state.”

at http://www.marketoracle.co.uk/Article20202.html