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Howdy Folks and welcome to the Daily coin my name is Rory and I have the uh distinct honor and pleasure of speaking with Mr Mark Faber from Gloom booom doom.com how are you doing today Mr fber yes very well and yourself I'm doing all right viewers and listeners also I hope they're they're all out there and we're all very excited to you here I'm very excited to speak I hope I shall not disappoint them I'm sure you won't um I wanted to start with uh what's with with China and Russia yes there there's several issues that are going on there that impact the entire world yes and the the two things that I've been focused on for about a year and a half are the Shanghai cooperation organization and the Eurasian economic Union yes now these two are seem to be moving a little bit closer together and in conjunction with the brics Consortium how do you see that impacting the Western World and will the Western world even matter in a few years as far as economically well this is very interesting question because I've been uh writing about geopolitics for quite some time because as an economic historian I'm obviously interested in these issues basically uh if we go back in history until the Russian Revolution 198 Russia and Europe were very closely linked culturally and economically and uh at the time there was no country such as Ukraine and Poland the German and Austria Hungarian Empire extended essentially in the Russian border at the time which was far more to the West than it is today and uh in 1905 it was interesting there was a a man in Britain Halford mcer he wrote basically who would control the hinterland that is basically the Territory between uh Eastern Europe and Far East Russia that he called uh the heart land he that this power would control the world and so he became essentially or is recognized as the first geopolitics and then in following on him after the war in 1945 there was a Geo strategist in America he was Dutch American who essentially is the founder of the containment theory he said yes the hardland this land mass China and Russia up to Eastern Europe is very important but more importantly one should control the rimland which is country surrounding there because you understand from the 19th century until today there this discussion between Naval powers and land Powers China and Russia Russia have always been land Powers whereas Britain and America are naval powers and so basically the aggression of NATO and we have to recognize it was an aggression uh in Ukraine and uh they wanted to essentially move uh and build uh missile bases in eastern Ukraine east of the nepper river which is clearly Russian territory historically seen and also ethnically uh that then pushed Russia away and the Europeans were stupid to follow that strategy yes you understand yes so they elimated Russia and Russia has become closer to China in addition to that the Europeans are brain damaged not the European people because the European people would like to actually be closer to Russia but the politician for one reason or another nobody understands why in Europe they are following the lead of the neocons in the US and want to prevent uh Russia from becoming an important country and so the Russians have moved closer to China also the Europeans were so stupid as to declare an embargo against Russia yes Russia has been surrounded for hundreds of years by countries that uh have has their specialty smuggling they are they've been smuggling for centuries and this embargo is a complete farce if someone in Russia wants a Mercedes car he can buy it in Beijing and ship it over by train and he can buy it in aaban he can buy it in Kazakhstan he can buy it in movia you can buy it anywhere so I mean the you understand I always complain about the economic interventionists in other words with fiscal measures and the monetary measures to interfere into the free market but about as bad as the neoc canian are in economics about as bad are people who have been running the state department like Hillary Clinton completely clueless uh condesa rise clueless as well and so forth and so on well I mean and John Cary just to just to carry forward I mean but at least he's a reasonably nice person can't be said said of Hillary and of condalisa yeah he's he's a nice nean he'll smile while he's while he's having the troops kill you with the the economic situation that we have in the United States which is we don't have one in my opinion and the numbers bear that out that our economy is kind of falling off a cliff and the service industry are the is the only place that's generating any jobs I mean how does the how does the US get out of this current situation without either a more QE or B A War I mean is there is there anything else well the problem is that uh when the US went into World War Two uh credit as a percent of the economy was maybe around 100 10% okay now it's uh close to 300% so you understand to finance a war is going to be well they will depend on more money printing that for sure they just have to turn it up as they've done under the bush I mean the whole credit has uh risen dramatically and the government's debt has risen dramatically and one day it will come and be very negative because obviously the US Pension funds both private Pension funds and especially the State Pension funds are grossly underfunded not a little bit grossly underfunded yes so either benefits will have to be cut in a democracy where everybody wants to get as big a share of the pie it's going to be difficult to tell your parents and my parents and uh all the retirees look next month you'll get uh 10% less pensions because then the car will really tumble and it to increase taxation is has is not working very well above a certain level yeah I mean we're already seeing stresses and strains with look at what's happening in in Illinois I mean so in my view the FED will have to continue to print money this is not what I recommend but this is likely what will happen and and then the value of course of paper currency goes down over time question is against what uh I think against precious metals and against probably real estate in selected areas and maybe against the one or the other foreign currency and and speaking of currencies being devalued coming back to China they have been I heard someone I can I wish I could remember who it was but here at the conference at the New Orleans investment conference someone said that China has dumped the equivalent of about 12% of their us Holdings of their Reserve Holdings or treasuries and if there's nobody buying our bonds how how much longer is it going to be before anybody even wants to use the dollar anywhere yes correct but the FED can Implement qe4 and buy more you understand that's what I'm saying basically these clowns at central banks uh they're playing with other people's money yeah it's not their money on the line right and when they get sacked when they retire they go and advise Goldman Sachs uh who they fed information inside information already before so they get a nice pension from uh Goldman Sachs or anybody else uh as in the form of Consulting fees and so forth It's All a Game it's all dishonest that's why I think the system will not survive forever but it can survive for another five years or so and then uh we have the longer this goes on with fiscal spending and deficits budget deficits and money printing the more vulnerable the system becomes is is the uh Yuan Remi being included in the SDR is that any impact or is that just political Grand standing I think uh that obviously over time if you look at the history of major currencies uh since the time of the Romans uh basically the Roman coins were the accepted currency at the time of Jesus Christ and so forth and later on we had uh the first major International currency was uh a Portugese I forgot what it they called it pizetta or whatever it is and then the Spanish currency and then basically the British pound and then the US dollars but uh Reserve currencies or Global currencies they don't last forever and given uh the fact that in many sectors the Chinese economy is now much larger than the US economy and that China has become a trading partner of over 120 different countries whereas the US is just the largest trading partner of 74 different countries given these facts I believe that over time the role of the US dollar will diminish and probably be replaced at some f point in the future by new currencies or the mess could be so bad that eventually the world will go back to some kind of a gold standard which was going to be my next question do you see either the the Yuan or the Russian Rubble or some form of Eastern currency being gold back in the in the not but I think also in the western world because I've noticed this uh prior to two 000 there were only two or three economists including myself uh that were concerned about the excessive credit growth in the United States and also about uh rapid uh monetary growth but especially credit growths then we had the NASDAQ collapse and then what they did is the nean they actually advocated the creation of a housing bubble with people like uh Krugman saying a housing bubble would help the economy a lot bubbles are a disaster for the typical man on the street for the median household right it destroys weals it doesn't create weals and then we were critical about the fed and then the 2007 crisis happened but then the media who was able to turn the crisis and make actually Ben banki a hero called him that they called him a hero yes for having essentially saved the Global Financial system I'm not sure the financial system is wor saving uh with the bankers who lost tons of money and had to P be bailed out by the government taking record bonuses something is wrong in the system but this is this crony capitalism the link between government and banking sector and the FED they all linked together sounds anyway criminal do of course it's criminal but who isn't Criminal among the politicians in the US so anyway to make a long story short in recent uh uh times say over the last 12 months I have noted uh much more criticism of the fed and other central banks by say mainstream economies even they wake upow slowly that this and this is unprecedented in the human history of more than 5,000 years from the old times in Babylon to today that interest rates are this low for such a long period of time yes never happened before but under the influence of some professors that went to the ivy schools and were brainwashed with series that are borderline econ e omic sophism they have no common sense whatsoever that these professors now essentially uh set the price of money some set it at a negative rate and so for that this is happening cannot end well in the long run it will end very badly very badly but you understand then the media will say Well it ended badly you know why because of the rich people they made money when actually rich people today most of the money is the money that the Fate printed it trickled down to the poor people to the waiters and the Carmen and so forth but it has trickled down the big went into asset price increases so they became very rich so fed is responsible not the rich people but the rich people will be blamed and when that also fails the rich people even if they give all their wealth it won't help by that time then the FED will say you know what the reason all this failed is because some people are hoarding gold yes and then they'll go after honest people that have some gold coins and gold in their saves or in their homes and they'll take it away and that's why I'm telling everybody yes you should own physical gold platinum silver but you have to store it outside the US and not in Europe which is run by dragi who is getting his orders from the FED yes and not in Switzerland but say in Asia maybe in Shanghai maybe in Hong Kong anywhere anywhere that's east of here okay well we've been speaking with uh uh Dr Mark Faber from Gloom boom doom.com and certainly appreciate all your time today uh Dr Faber and is there anything you would like like to uh leave the audience with no thank you very much the last thing I want to say nobody knows how the world will look like in five years time was to make predictions about markets is very difficult but it's impossible to make any predictions when the markets are manipulated by a bunch of clowns in central banks around the world yes and so you have to be Diversified you have to own some real estate some equities maybe some bonds and cash and some precious metals and I would essentially look at the world as becoming extremely competitive because we have over three billion people coming out of China India and uh other countries being now educated and these people are hungry and willing to work at any cost so they'll work a lot and uh the comfortable living that you and I may have enjoyed in our used because don't forget the US from 1800 to say 1960 1965 every generation was richer than the one before yes and now we have in the Western World in Western Europe and in the US a generation of young they will earn less than their parents and die poorer than their parents courtesy of the Federal Reserve and of the interventionists the criminals the criminals Yes W Dr fber I certainly appreciate all your time and and I hope that we can do this again in the future
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