The Next Crash Will Be Much Worse Than 2008

Before Then, Expect More Money Printing and More War

by Dr. Marc Faber
courtesy The Daily Bell

(Editor’s Note: Please note that NO ONE in the media factors inflation of stock prices into the numbers that come out of the market. So when QE3 and more massive infusions of paper money get dumped into the world economy, it will be entirely possible to see world stock markets rally. But what is a Dow at 15,000 when the money is worth less and less, heading toward worthless? Get the hell out of the market, readers, and concentrate on wealth preservation and cash. No paper investments, only hard assets like gold and silver. Forsake earnings and protect what you already have.)

On August 8th, 2011 Dr. Marc Faber was interviewed on CNBC about the future of the US dollar-debt crisis and what investor’s can expect to take place in the markets.

During the interview, among several timey questions, Dr. Faber was asked, “What’s the end game here? Is it the collapse of Western civilization as we know it? … Where are we going here? How must It inevitably end in your opinion?”

To which Dr. Faber replied, “You have a computer and occaissionally the computer will crash and need to be rebooted. That will happen to the global economy. So basically, the central banks are willing to do that. By printing money the problems are not solved but they can be postponed and they become larger. … The next time we have a global economic crisis it will be much worse than 2008. Before this happens there will be money printing and war.”

Marc Faber, Ph.D, publishes a widely read monthly investment newsletter, The Gloom Boom & Doom Report, which highlights unusual investment opportunities. Dr. Faber is the author of several books including Tomorrow’s Gold – Asia’s Age of Discovery, which was first published in 2002 and highlights future investment opportunities around the world.

Dr. Faber describes himself as a free-market economist, but also notes that he uses other disciplines in his analysis as well. As an adviser he is not strictly speaking a value investor but uses a variety of tools. His clients, he says, expect some sort of profit on their funds every year. Simply beating market averages is not enough.

Here at the Daily Bell we are regular followers of Dr. Faber’s prescient work. In fact, Marc was interviewed at the DB recently. Here is a link to that interview: Marc Faber on 21st Century Investing, Why It’s too Late for the Dollar and Why Emerging Markets Look Good.

Dr. Marc Faber lives in Chiangmai, Thailand and is the author of Tomorrow’s Gold.

Copyright © 2011 The Daily Bell

One Response to The Next Crash Will Be Much Worse Than 2008

  1. Richard says:

    Economic crash or slow death?

    The prophets of doom as well as those who are impatient for change tend to wish for a trainwreck. It is their hope, as well as mine, that the erosion of our fortunes and liberties may come to an abrupt end as soon as possible.

    That does not, in fact, appear to be what has happened or what may happen.

    Explanations of citizen apathy usually employ the slow cooker illustration. A sudden change will alert many, while a slow progression or erosion, allowing adjustment of attitude and habit, will lull the hive mind of the citizenry into complacency. This is as good a reference as any I’ve heard or read, but one that is seldom used to project our future.

    What if….the American economic and political circumstances continue to fail SLOWLY? What if…things change gradually enough to allow mental attitudes to change with the tide?

    In the tale of Gulliver’s Travels the tiny Lilliputian people were able to bind the giant while he slept.

    Will we awake in time or belatedly open our eyes only to discover the trap too late? Many voices across the land are crying and shouting ‘AWAKE’. Is the alarm loud enough to wake the sleeper?

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