Monday, November 26, 2012

Marc Faber–Prepare For A Massive Financial Meltdown

Faber is one of my favorites as noted on here many times over the years.  If there is any single person who has gained acceptance and fame in this system, or in Faber’s case, often notoriety, that I want to listen to, it is Faber.   In my estimation, Faber, more than anyone else in the world who is famously part of the status quo, understands how this current financial and monetary system works.   Of course, there are countless people outside of this system who are equally, if not better equipped to understand what is going on today.  But Faber is unique within the system as a general source of lucidity and reality who has survived and thrived through numerous fads and short term trends. 

Now, that said, over the years Faber has made some nonsensical remarks that he has eventually rejected.  That is also what makes Faber a worthwhile voice in the system.  He has little ego and doesn’t wed himself to most positions.  When Faber essentially said the U.S. was headed for the scrap heap and China and Asia would inherit the world and when he called the euro a safe currency and the dollar was headed for collapse and a few other comments over the years, I called him out for those ludicrous remarks.   He let his bias and his belief system cloud his judgment at times.  There is a Freudian desire and associated belief system for many people to see the United States collapse and it clouds their judgment about what is yet to come. 

Faber’s most recent remarks line up very well with some of my long time theses on here.    That is, global finance is going to collapse and so will all financial markets, corporate profits and the global economy.  In addition, Faber interestingly has come out with a new position.  That is, that the period of time between 1980 and the 2008 collapse was a period of “living beyond our means”.  Long time readers will recognize for a very long time I have noted that U.S. economic activity peaked around 1980.  And, while I haven’t shown the data, I can most certainly prove that statement to a very high degree of probability.    Not more than a year or two after my initial remarks regarding economic activity peaking around 1980, a well-received book came out that made a similar conclusion.  I highlighted that book on here some years ago.  And, recently Bill Moyers highlighted the book and its authors.  Now Faber is remarking of a similar dynamic.  1977-1982 is a very key time in the economic history of our nation.   And, as noted on here before, the economic activity since was fueled by massive money printing.   We haven’t become wealthier since 1980.  We have become wildly more poor.   But the perception of wealth created through massive money printing during this multi-decades destruction of our economic system plays a pivotal role in our future.  I’m not done with this topic by any means.  1980 plays a key date in what I consider will probably be the most important post I will ever put on my blog.  A post that I will put up on here at some point in the next few years.  And, while I have said I don’t believe we will go back to 1980 financial asset prices, it most certainly is possible.  The greater truth of the universe doesn’t really care what I believe.   Much of what is to come is preordained.  It cannot be stopped.   I don’t mean some 2012 end-of-the-world preordained either.  I mean as a complex system, there is no way to stop some of the destabilization and volatility that is yet to come. 

By the way, it was the looters who lived beyond their means from 1980 to 2007. It wasn’t the average citizen of the U.S. or anywhere else.  Did 50 million people on food stamps live beyond their means?  Did the 25% of Americans who are unemployed?  Did the 160 million Americans who essentially have less than $10,000 in net worth live beyond their means?  Did the 50% of people in Detroit or countless other cities who don’t have a job live beyond their means?  Or the 50% of new college graduates who can’t find a job?  No.  It was politicians, banking criminals, the investor class, the corporate entertainment complex and the corporate state that lived beyond their means.   

Faber still has one major blind spot in his recent comments.  That blind spot is money and debt.  Faber understands how this system works but yet hasn’t opened his belief system to appreciate how this system of money and banking is finished.  And, with that, what is possible or probable in replacing the current system as a greater awareness develops.   Faber, like every single person within the system, doesn’t really understand money from a conceptual standpoint.  He understands how this monetary system works.  I attribute this faulty belief system and outright ignorance to his European heritage.  Europe, being a mercantilist, colonial empire-driven exploiter and predator is and always has been a source of tyranny and corruption when it comes to money and banking.  Never has the European continent experienced democratic money.  So, Faber still wrongfully believes that the value of money is derived through money itself.  He doesn’t seemingly understand that money itself has absolutely no value in a functioning democracy or democratic economic system.  It is the value of inventiveness, creativity, production, human expression, etc that a free people, ruled by law and not men, excel at that gives money its value.  Our money is dying because democracy and the rule of law is dying. 

Democratic money is fiat money.  It is abundantly available for all citizens and for the freedom of ideas and expression of all people.   It is not the for-profit, criminal banking and monetary system we have today.  Faber still believes money itself is defined by intrinsic value.  That is why Faber likes gold.  It’s why all gold bugs love gold.  They simply don’t understand money or democracy.   These are faulty belief systems instilled by a history of feudal lords, private for-profit banking oligarchs and their pliant political marionettes in the state. 

Gold money is the money of looters, banking criminals, oligarchs and self-appointed kings and lords who use its scarcity to deny others their economic and democratic rights.  To enslave others to their illegitimate power and control.  Gold is used to dumb-down society by maintaining a grip on what forms of human expression and economic ideas are allowed or endorsed by the state, oligarchs, corporations and our masters.  Anyone who believes we should return to gold money is an economic and monetary idiot.  Truly.   And, if you listen to them, you are an idiot too.  Wake up to a greater truth. 

Faber remarks that the U.S. must take its medicine by cutting social programs to pay the private, for-profit banking syndicate and their extortionary racketeering.  Just like the mafia, street gangs, drug cartels and other organized crime syndicates.   As I have noted on here countless times, debt is a myth and no sovereign democracy ever needs to borrow a nickel from a private, for-profit banking cartel of looters.  And, this notion that poor and exploited people in this nation or anywhere else need to take their medicine by cutting democratic social programs is nonsensical bullshit driven solely by evil and monetary ignorance.  Along with that is this myth of a fiscal cliff.  More nonsense and ignorance that will simply create disaster. 

This whole system is finished.  But, as I have noted numerous times, that doesn’t mean we are going to see a debt collapse.  There are numerous people within the status quo who are writing books, selling bomb shelters, selling food and other forms of profiteering by scaring people into a coming debt collapse.  There are many things to be concerned about in the future, but by no means is a debt collapse imminent.  These people are exactly like the generals who are always fighting the last war.   We witnessed a debt collapse in the Great Depression so they expect one today.  They are using the rear view mirror to divine the future.  Just like those generals fighting the last war, they don’t know what they are talking about and their strategies/rigid belief systems always involve massive blind spots. 

The issue is not debt.  Debt is simply a manifestation of the greater reality of economic slavery created by our neofeudal corporate and political masters.  This system is going to unwind with or without a debt collapse.  And, even though we have already seen the Federal Reserve ante up $25 trillion in free money to bail out bankers, there are some who believe a debt bust is imminent.  If the Federal Reserve can bail out the bankers, the reality is they can bail out everyone.   The size of the Federal Reserve’s balance sheet is infinite even if there are minor political, law-driven stepping stones to get to that point.    But doing so exposes the myth of debt enslavement as I have noted many times on here before.  And, if the debt myth no longer exists, how will the status quo continue to maintain its economic slavery?  They won’t.  If a debt collapse does come to pass, it will only be due to the criminality of the existing system to absolve our society of illegitimate economic slavery.   That is a distinct possibility but it, by no means, is a guaranteed outcome.  Anyone who believes it is is simply showing the extent of their rigid belief system’s massive blind spots. 

posted by TimingLogic at 12:38 PM