원문 보기
Western governments will have to print money, otherwise the system will collapse. So, in my opinion, the situation doesn't look particularly favorable, but it's possible that, through money printing, stocks and residential properties, by the way, will be kept at a high level and perhaps even rise. They can continue to fall against the price of gold, which I would consider a relatively stable currency because no central bank can manipulate the price of gold.
They can... I have to rephrase this: they can manipulate it in the very short term, but not in the long term. Sovereign debt burdens and rising budget deficits have left Western economies completely cornered, with no realistic paths to genuine fiscal stability. Stopping the printing of money is virtually impossible without causing an instant systemic collapse.
Marc Faber, the experienced Swiss economist and editor of the Gloom, Boom, and Doom Report, claims that government administrations print trillions simply to delay the financial reckoning. Instead of addressing the underlying fiscal disasters , politicians shift accumulated liabilities onto future generations to preserve their immediate mandates.
His main macroeconomic prediction reveals that, although infinite liquidity could keep nominal stock market indices and residential real estate artificially elevated, both asset classes will fall dramatically when valued against physical gold. In fact, it projects that in the coming years, silver will decisively overtake gold, with platinum surpassing both monetary metals.
Central banks cannot artificially suppress the value of bullion in the long term, ensuring that unbacked fiat currencies continue their relentless collapse in purchasing power. Tangible monetary assets remain the primary hedge as fiduciary structures deteriorate under insurmountable debt. Now, we present the clips from the interview with Marc Faber.
f you look at the level of debt and the level of economic growth, and in particular, if you look at public debt and government budget deficits, how much the governments of the Western world spend compared to their income through taxes (these are budget deficits), it seems to me that it is impossible to stop the printing of money.
Western governments will have to print money. Otherwise, the system will collapse. And it will collapse sooner or later, but a government is elected for several years and therefore they want to survive during that period and postpone the problems. They really have no interest in solving the problem .
They simply like to postpone it. And, in fact, they often want to burden the next administration with even bigger problems. So, in my opinion, the situation doesn't seem particularly favorable. But it is possible that, through the printing of money, stocks and residential properties, by the way, will remain at a high level and perhaps even rise; But they could continue to fall against the price of gold, which I would consider a relatively stable currency, because no central bank can manipulate the price of gold.
They can... I have to rephrase this: they can manipulate it in the very short term, but not in the long term. Central banks have never controlled the markets, but they had influence over them and on economic activity, whereas now they may have lost a lot of control because, if they print money, they can boost stock prices, but they could boost the price of precious metals more than stocks.
And that's why, in real terms, in terms adjusted for gold, asset prices like stocks would fall. And the other thing is that they can print money and expect to lower interest rates. Now, they may be able to lower rates in the short term. Let's say they can cut the federal funds rate, but I, as a bondholder, don't like it when they cut short-term rates.
I want them to have to follow a strict monetary policy. As a bondholder, nothing would please me more than a recession. Do you understand? Actually, I own bonds because I believe we are already in a recession, but the government is publishing the statistics. And then the statistics don't show a recession .
Yes, they have that power in nominal terms, but it is limited. Look, they've been printing money massively, especially after COVID. But they were already printing before that, throughout the 20th century. They printed money and expanded their balance sheets. But especially after COVID, if you look at the price of commercial properties around the world, especially in the Western world, I just saw a chart where many properties in the United States have dropped 80% from their peak in 2017-2018 .
So, we had money printing and, despite the money printing, one asset class that fell a lot. And this is what can happen with printing money, because printing money doesn't raise everything uniformly. Increase this asset, say real estate in California, and then maybe real estate on the East Coast, and perhaps stocks.
And not all the stocks in recent years, just the "Magnificent Seven". And the same goes for technology companies, but many other stocks do not. Gold stocks were down until 18 months ago. And starting 18 months ago, they began to rise. So price movements are very irregular. And more recently, and this is an issue that Mr.
Trump certainly does not understand precisely. More recently, as you know, the prices of groceries and goods in department stores and supermarkets have risen, and they have risen more than people's wages. And the cost of insurance premiums has risen more than people's wages . And so, in real terms, uh, people's incomes have gone down and the affordability of life has decreased.
There was an article on Bloomberg just 10 minutes ago about a couple who moved to New York and live with another couple in a 500-square-foot apartment because they can't afford it on their own. And living with another couple in a 500 square foot apartment creates different kinds of problems, like how to get along , etc., etc.
But they understand that money can be printed, and then affordability gets even worse. But I agree with you that Trump's friends are rich people. I can assure you that some of them called him and said, "Are you crazy to get involved in the Middle East war ? Our stock portfolio has dropped 10%." Monetary expansion is never distributed equally throughout the real economy.
Instead of raising all asset classes in unison , artificial liquidity from central banks causes extreme structural imbalances in the market. While isolated speculative stocks experienced extraordinary gains, major commercial properties in western metropolitan centers have collapsed 80% from their cyclical peaks.
Simultaneously, severe consumer price inflation is drastically outpacing basic wage increases. Supermarket bills, department store goods, and rising insurance premiums have skyrocketed far beyond typical workers' wages . As a result, real household disposable income is evaporating, ruining standard consumer affordability and forcing working couples to live in cramped 500-square-foot apartments just to cover monthly expenses.
Injecting fiat currency into the financial flow actively worsens these domestic life pressures. Multiplying severe social friction while central planning systematically destroys the living standards of the middle class. Paper stimulus cannot resolve supply tensions or provide sustainable economic relief .
Now, let's get back to the interview. I mean , the war could theoretically end tomorrow if people were more reasonable and decided to call a ceasefire and sit down and say, " Okay, we agree not to attack each other." And so on. However , this is unlikely to happen because the Iranians are not very interested in peace in the current situation, and they will not give up their armaments or weapons programs now that they have seen that they may be attacked.
So, that's actually an incentive. As you can see, the Americans, in my opinion, made two mistakes, or rather, the big mistakes. They froze the assets of countries like Russia. What's the score? The whole world is saying, " Okay, US dollars aren't safe for our assets. So we buy gold." Therefore, central banks have been increasing their gold reserves.
They still hold dollar reserves, but they are not increasing as a percentage of total reserves, much less the dollar-gold reserves. In fact, they are reducing them. And the second mistake, the United States goes and removes Maduro and others. Then the countries scratch their heads and say, "Well, we'd better have some defensive weapons in case we get attacked." And the Iranians say, of course, now that Israel has nuclear weapons, they want nuclear weapons too .
And one day the Saudis will want to have nuclear weapons, and the Turks, and everyone else. As you know, for the past 40 years I have told you that you must be your own central bank because you cannot trust the banks we have, which print paper money and are responsible for the loss of your purchasing power.
I mean, the purchasing power of money has decreased everywhere. And money remains a useful unit of account, but it is a poor store of value. Now, to counteract the loss of purchasing power of paper money, in my view, the best thing is to have precious metals: gold, silver, platinum. But what will rise the most, I couldn't say.
Based on the charts, my opinion is that silver will surpass gold in the coming years, and that platinum will surpass both gold and silver. And, by the way, if we measure everything against gold, oil is very cheap, very cheap. And agricultural products, wheat, corn, soybeans, are very cheap compared to gold and silver.
So, to answer your question, silver could probably outperform gold, but you would need a very large safe to store it in. And I like having the physique. I also own some shares. I own shares in silver mines and other things, but we must distinguish between the paper, which are the shares, and the physical.
And as diversification in my diversified asset portfolio, which includes real estate, cash and bonds, stocks and precious metals, I hold silver, but of course I have more gold in physical form. I think most people have very little cash. Because so many observers and advisors have said that cash is junk, and due to the loss of purchasing power of money, very few people hold much cash.
And it has low performance. You understand? An investor is expected to obtain a 10 or 12% annual return. Cash doesn't offer you that, but personally I think you should have some cash. Yes, except for one thing. I wouldn't feel comfortable; in my grandparents' time, having cash in a bank was the safest thing for your savings.
I don't believe that anymore. I believe that all cash in the banking system carries a risk because banks are likely to be quite unstable. You could have cash in an insurance company, but the insurance industry is also very unstable. So, in the end, if you look at the last 100 years, let's say you take the major companies in Germany in 1900, they went through World War I, hyperinflation, World War II, and they're still around.
That's surprising. I mean, of course, during times of war they may have stopped paying dividends and so on, but the big groups are still there. And I think having a portfolio of quality companies is probably not the worst idea. Aggressive geopolitical actions, notably the international freezing of foreign sovereign assets , have permanently disrupted confidence in global finance.
Central banks around the world now recognize that dollar-denominated reserves remain vulnerable to unilateral confiscation, leading sovereign treasuries to systematically reduce their dollar holdings while aggressively accumulating gold reserves. In this fragmented financial climate, self-sufficiency is essential.
Individual savers should operate effectively as their own private central bank. Paper money serves as a unit of account for everyday transactions, but history shows that it functions as an absolutely disastrous store of value . Traditional reliance on institutional cash storage carries substantial risk, as modern commercial banking institutions and insurance corporations remain structurally fragile.
True risk mitigation requires direct ownership of physical precious metals rather than relying solely on paper mining shares or unbacked promises from counterparties. Furthermore, tangible assets such as crude oil and agricultural commodities, including wheat, corn, and soybeans, remain significantly undervalued when measured against real gold.
Navigating systemic monetary instability requires a balanced portfolio anchored in physical bullion and ownership of high-quality resilient companies with a proven track record of surviving global conflicts, severe crises, and historic hyperinflations. Securing tangible, unencumbered capital provides fundamental solvenc press s for watching.
Comments 0