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Friday, August 5, 2011

Billionaire Marc Faber: Brace for a Global Economic Collapse and War

CNBC Interview

....However, temporary upturns and the artificial boost to markets given by printing money only disguise the coming threat to the world economy, Faber warned.
"You have a computer. Occasionally the computer will crash and you have to reboot it. That will happen to the global economy. Before this happens there will be much more money printing because basically the central banks are willing to do that," he said. "By printing money, problems are not solved, but they can be postponed, and they become larger. It's like the recession in 2001. Had there not been massive money printing, it would have been steeper than what we had, but equally, we would have avoided probably the financial crash in 2008."
The next crisis will be far bigger, according to Faber.

"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 there will be war. The whole system will collapse," he said. "That's why I'm advising people that they have to think it through. In a total collapse you don't want to own government bonds and cash."He added: "Equities—they don't perform well, but at least you have the ownership of companies. Precious metals in that environment do relatively well. And of course, oil would do well if there was a war."

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