Featured Stories World News Commentary Money Watch Multimedia Prison Planet U.S. News Science And Technology

Marc Faber Fears “A Vicious Circle To The Downside” Is Just Beginning

  • Print The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Infowars.com Twitter Alex Jones' Facebook Infowars store

Zero Hedge
February 5, 2014

It’s not just tapering that is putting pressure on markets,” Marc Faber warns in this brief clip. “Emerging economies have practically no growth and we have a slowdown in China that is more meaningful than strategists are willing to believe,” he adds and this is “causing a vicious circle to the downside” in inflated asset markets as most of the growth in the world over the last five years has come from emerging markets. Faber suggests Treasuries as a safe haven in the short-term; but is nervous of their value in the long-term as “debt is becoming burdensome on the system.”

“A lot of economic growth was driven by soaring asset prices”


On Treasuries:

For the next three to six months probably they are a better place to be than equities,”

I don’t like [10-year Treasurys] for the long-term because the maximum you can earn is something like 2.65 percent per annum for the next 10 years, but Treasurys are expected to rally because of economic weakness and a stock market decline. In the last few years at least there was a flight into quality – that is, a flight into Treasurys.”

On China and shadow banking defaults:

China can handle it by printing money but it will again have unintended negative consequences… but the

problem is real… but it’s not just in China…”

Faber warned of the risks of the present global credit bubble and said another slowdown could follow on the back of rising consumer debt levels – which had previously helped to create growth.

Total credit as a percent of the global economy is now 30 percent higher than it was at the start of the economic crisis in 2007, we have had rapidly escalating household debt especially in emerging economies and resource economies like Canada and Australia and we have come to a point where household debt has become burdensome on the system—that is, where an economic slowdown follows.”

This article was posted: Wednesday, February 5, 2014 at 6:04 am





Infowars.com Videos:

Comment on this article

Comments are closed.

Watch the News

FEATURED VIDEOS
Sony Hack: What They're Not Telling You See the rest on the Alex Jones YouTube channel.

Help Baby Olivia Survive Her First Christmas See the rest on the Alex Jones YouTube channel.

© 2013 PrisonPlanet.com is a Free Speech Systems, LLC company. All rights reserved. Digital Millennium Copyright Act Notice.