Faber Warns - Everything Will Collapse
economist Marc Faber appeared on Bloomberg
a harsh, direct warning to investors.
monetary policies will destroy the world," he said, referring to the new round
of stimulus - QE3, or "QE Forever" - the Fed plans to launch this
the publisher of the influential Gloom
Boom & Doom report,
Faber is well-known for making ominous predictions. Many regard him as the first
to warn investors to get out of the stock market one week before the October
since the 2008 meltdown, he's been a fierce critic of the Fed's policy of money
printing, arguing it only creates a phony recovery.
it wasn't surprising to hear him speak out against Bernanke's most recent
stimulus plan, quantitative easing or QE3.
was surprising - and frightening - was the level of wealth-destruction he
believes will occur.
to Faber, "eventually we will have a systematic crisis and everything will
couldn't pin down the timing of his alarming prediction, but said the bigger
concern wasn't when the economic storm will begin, but how high the market will
go until then.
question is really between here and then," he said. "Will everything collapse
with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer
and, believe me, if Mr. Romney wins the election the next Fed chairman will also
be a money printer. And so it will go on."
group of his economic peers agree that with more central bank action like QE3,
global economic collapse is imminent.
a newly released documentary that went viral last month, a team of influential
economic experts say they have discovered a "frightening pattern" they believe
points to a massive economic catastrophe unlike anything ever seen.
according to these experts - who have presented their findings to the United
Nations, the UK Parliament and a long list of world governments - the
catastrophe may happen well before Americans hit the polls in
this pattern represents is a dangerous countdown clock that's quickly
approaching zero," said Keith Fitz-Gerald, the Chief Investment Strategist for
the Money Map Press, who predicted the 2008 oil shock, the credit default swap
crisis that helped bring about the recession, and the Greek and European fiscal
catastrophe that is still wreaking havoc until this day.
resulting chaos is going to crush Americans."
member of this team, Chris Martenson, a global economic trend forecaster, former
VP of a Fortune 300, and an internationally recognized expert on the dangers of
exponential growth in the economy, explained their findings further:
found an identical pattern in our debt, total credit market, and money supply
that guarantees they're going to fail," Martenson said. "This pattern is nearly
the same as in any pyramid scheme, one that escalates exponentially fast before
it collapses. Governments around the globe are chiefly responsible."
what's really disturbing about these findings is that the pattern isn't limited
to our economy. We found the same catastrophic pattern in our energy, food, and
water systems as well."
to Martenson, these systems could all implode at the same time.
water, energy, money. Everything."
Kent Moors, one of the world's leading energy analysts, who advices 16 world
governments on energy matters and who currently serves on two State Department
task forces on energy, also voiced concerns over what he and his colleagues
frightening of all is how this exact same pattern keeps appearing in virtually
every system critical to our society and way of life," Dr. Moors
a pattern that's hard to see unless you understand the way a catastrophe like
this gains traction," Dr. Moors says. "At first, it's almost impossible to
perceive. Everything looks fine, just like in every pyramid scheme. Yet the
insidious growth of the virus keeps doubling in size, over and over again - in
shorter and shorter periods of time - until it hits unsustainable levels. And it
collapses the system."
points to the U.S. total credit market debt as an example of this unnerving
30 years - from the 1940s through the 1970s - our total credit market debt was
moderate and entirely reasonable," he says. "But then in seven years, from 1970
to 1977, it quickly doubled. And then it doubled again in seven more years. Then
five years to double a third time. And then it doubled two more times after
we were sitting at a total credit market debt that was 158% larger than our GDP
in the early 1940s... By 2011 that figure was 357%."
Moors warns this type of unsustainable road to collapse can be seen today in our
energy, food and water production. All are tightly connected and contributing to
the economic disaster that lies directly ahead.
to polls, the average American is sensing danger. A recent survey found that 61%
of Americans believe a catastrophe is looming - yet only 15% feel prepared for
such a deeply troubling event.
says people should take immediate steps to protect themselves from what is
our research is right," says Fitz-Gerald, "Americans will have to make some
tough choices on how they'll go about surviving when basic necessities become
nearly unaffordable and the economy becomes dangerously unstable."
need to begin to make preparations with their investments, retirement savings,
and personal finances before it's too late," says Fitz-Gerald.