ongoing, updated as the interview goes on.
Marc Faber, the famous author of the Boom, Gloom and Doom Report, is on BNN for a lengthy interview today. From Vancouver, Some of his points:
- Fed has encouraged a casino.
- Greece has defaulted as much as Argentina in the last 200 years and will continue to do so, except this time they have a big uncle called EU.
- Some countries in Europe are strong, like Norway and Switzerland, but they have banking problems.
- On gold becoming new world reserve currency: problem is CBs may take gold away from us (confiscation).
- If the US were a corporation it would go bankrupt; if you include Freddie and Fannie, medicare, etc, its total liabilities would be over 600% over GDP
- Conditions favor Canada
- By end of 2010 Chinese economy may crash, lots of speculation in properties
- How to make money: on a rebound sell copper, industrial commodities, short Australia
- There is a very clear property bubble in Australia
- If there is indeed slow down in China it will have profound effect globally, Canada, Brazil will be affected
- He is surprised that people still listen to what President Obama has to say; the jobs reported are not real jobs, but a statistical assumption
- Asked if everything is so rosy, he says "Everything is horrible"; if there is an economic recovery, it will not be sustainable
- Is India a good place to invest? India grow between 5% and 10%, it has high education standards for 10-20% of population. Investors are grossly under weighted in India.
- On GLD, favors physical gold for when the time will come for governments to grab gold
- India vs China: In China we have order and no law; in India we have law and no order; Some problems in India, ethnic, Pakistan
- It was a mistake to bailout GM, AIG and Greece. If you own a small business nobody will help you.