Marc Faber, the Swiss fund manager and Gloom Boom & Doom editor, said eventually there will be a big bust and then the whole credit expansion will come to an end. Before that happens, governments will continue printing money which in time will lead to a very high inflation rate, and the economy will not respond to continued stimulus.Speaking at a conference in Singapore on Wednesday, Faber said: “The crisis has not solved anything. On the contrary there is less transparency today than there was before. The government’s balance sheet is expanding, and the abuses that have led to the one cause of the crisis have continued”.
“I think eventually there will be a big bust and then the whole credit expansion will come to an end,” Faber added.
“Before that happens, governments will continue printing money which in time will lead to a very high inflation rate, and the economy will not respond to stimulus”.
In one of his Gloomiest predictions, Faber, referred to as Dr Doom, said “the average family will be hurt by that, and then in order to distract the attention of the people, the governments will go to war”.
“People ask me against whom? Well, they will invent an enemy,” Faber said.
“At some stage, somewhere in future, we will have a war – that you have to be prepared for. And during war times, commodities go up strongly,” said Faber.
“If you want to hedge against war, you don’t want to own derivatives in UBS and AIG, but you have to own them physically, like farmland and agricultural commodities. That is something to consider for you as a personal safety and hedge. You have to own some commodities,” he added.
In a Bloomberg Television interview in Singapore Wednesday, Faber said “What will continue to happen is that the S&P 500 and the Dow Jones will go down relative to gold.
“I think gold will go up more,” he added.
“Will it go US$2,000, US$200,000 or US$2 trillion? I don’t know,” Faber said. “But if you have money printing in the world, then the price will over time rise. It will go up more for things that you just can’t increase the supply, and the supply of precious metals is very limited.”
Faber expects the US government to increase its stimulus spending should the Standard & Poor’s 500 Index fall toward 900. The US budget deficit under President Barack Obama’s administration reached a record US$1.4 trillion in the fiscal year that ended Sept. 30. Debt amounted to 9.9% of the nation’s economy, triple the size of the 2008 shortfall.
“I don’t think the S&P will drop below 800 or 900, and eventually will go higher in nominal terms, but not necessary in real terms,” he said, predicting a correction in the measure in the “near term.”
Faber has been warning about a collapse of the capitalistic system ‘as we know it today,’ massive government debt defaults and the impoverishment of large segments of Western society.
In a May interview with CNBC, he said central banks will continue to print money at full speed, but long-term this strategy will lead to a fall in purchasing power and living standards, especially in developed countries.
The years 2006 and 2007 were “the peak of prosperity” and the world economy is not likely to return soon to that level, he added.
Unless the system is cleaned out of losses, “the way communism collapsed, capitalism will collapse,” according to Faber. “The best way to deal with any economic problem is to let the market work it through.”
“I repeat what I have said in the past,” Faber said. “No decent citizen should trust the Federal Reserve for one second. It’s very important that everyone own some gold because the government will make the dollar (in the long term) useless.”
Also See:
Marc Faber: The Collapse Of Capitalism Is Now Inevitable
Ron Paul: Be Prepared for the Worst
Red Alert: The Second Wave of The Financial Tsunami
An Imperial Strategy for a New World Order: The Origins of World War III
Project 2012: Predictions Coming True? Nuclear War Begins Soon? Updated
Video: What happens after the US goes bankrupt?Prepare For War – Live Free Or Die
Soceite Generale – Get Ready For Global Economic Collapse
Global Crisis: How Much Time do We Have?
Dollar Will be Utterly Destroyed: Global Currency, New World Order
Max Keiser: There will be a Violent Revolution in America
The Economic Crisis and What Must be Done
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How to revrse recession in matter of days this the summary of my book Economic Revolution Of The Century ABSTRACT :
I have developed a new financial instrument which will be much more valuable than the bonds or the treasury bills government sells in the open market to raise much needed funds to run the country. These are all interest based instruments and can only be used by institutions. The instrument I am proposing is without interest and will be used by every body to purchased goods and services in the government and private sector resulting in up to 60% discounts .This is why these will be massively bought up front in large amounts in the shortest period of time of one month to run the country for at least a year and much more by the end of the year.
INTRODUCTION:
The world is facing many challenges with no solution in sight.
The main cause of all these ills is the POVERTY. Float bonds which can be used by everybody rich or poor and are not debt to the state so there is no question of interest.
How: Take the example of USA which is going through a great recession.
USA borrows money by selling treasury bills and the interest based bonds. The suggestion is to sell these bonds on non interest basis
EXAMPLE: ONE dollar buys 5 bonds on the condition that the amount should be $100000 or multiple of it. Fewer amounts will get the rate of four and three. This discount massive period is only for first month at the start of the implementation of this system. In the second month the rate will be 4 but the rate of 3 will apply to subsequent months for the same amount
WHERE THESE BONDS WILL BE USED?
1. All state controlled services and commodities.
EXAMPLE: A bill of (any service or Commodity) $100 can be paid with 200 bonds and there will be no exception to this rule .A NET DISCOUNT OF 60 %.
A simple formula will apply: Total bill in dollars x2 is the number of bonds surrendered. Price in bonds will not be less than the cost price but without the direct indirect taxes and the duties which are added to the present to make it very expensive.
It will attract at least 50 million people to take this opportunity as early as possible. And if one is sure of making 100% profit within 30 days there will be many more that will help themselves.
RESULT – Government gets at least $15 trillion within a very short period of time of few days and much more in the rest of the year .THIS IS NOT A DEBT AS STATE HAS SOLD BONDS( Commodity) WHICH IS AN ALTERNATE CURRENCY AND DO NOT CARRY ANY INTEREST. One immediately thinks who will join this club bear the loss and this loss to the state will not be more than total year budget of $2.5 trillion which it collects in one year with all the taxes and the duties but the bond price is simply a cost price without any kind of tax or duty. So there is a net gain of approximately 2.5 trillion with in a short period of time.
WHO WILL SELL THESE BONDS?
State will float tenders to will select a private agency (USMF) UNITED STATES MONITORY FUND JUST A NAME GIVEN TO THIS ORGANIZATION with the lowest bid WHERE AS second third and forth bidders will be auditors of USMF. This agency will employ at least 20 million unemployed on 10% commission basis and without any salary. These agents will have to pay $500 as an annual fee to USMF in order to build the infrastructure for the sale of bonds. Agents quota Will be $300000 per month or they will be allowed to sell their whole year quota in one day or in a month, This will only materialize if the agent shares his commission with the would be buyer. Greater the share of commission quicker the sale. This investor or a buyer will sell these bonds at the same rate of 5 per dollar and his bonds will sell like hot cakes every day as there is no condition of the amount of money to purchase of bonds. In this way even the poorest person will get the same rate or near the same rate as the investor except for the commission which he takes from the agent who makes almost 100% profit by only investing $100000 .He will sell these bonds repeatedly and will keep at least 6% profit every day till the demand lasts. NOW THINK HOW MUCH STATE HAS ACCUMULATED Much more than few years budget in matter of only one month.
FLOOD GATES OF MONEY AND TURNING POINT.
This is only the first flood gate of money and there are seven of these yet to open so at the end of 30 days or even much earlier the government declares tax free country for ever. With the removal of all kinds of direct and indirect taxes and duties the price of oil electricity telephone and of all types on other items under government control is almost 60% less than before as these are being purchased by bonds (which is the cost price) and not with dollars. The production cost of every thing has come down tremendously.
SECOND OPTION
STATE ALSO OFFERS 10 MILLION DUTY FREE IF ONE DEPOSITS $100000 NON REFUNDABLE. THIS BRINGS OUT ALL THE BLACK AND SPARE MONEY WHICH STATE WAS NOT ABLE TO GET BEFORE AND AS THERE IS NO TAX AND HENCE NO TAX EVASION SO ALL THE MONEY IS WHITE AS IT IS BEING GIVEN TO GOVERNMENT .
This was the second flood gate of money which is even bigger than the first one and the exact amount is impossible to asses unless the system is implemented.
In order to provide cheep bonds through out the year government offers three types of registration fees.
1. Pay $100000 in the start of the year and get the rate of 5 for the rest of the year and this will suit the professional’s and salaried person’
2. Pay $10000 yearly and get 20000 new bonds at the rate 5 every month but one has to collect 10000 bonds (equal to fee) to get this cheap rate through out the year. Higher the registration fee more the entitlement of cheep bonds. This registration will suit any small time business who will sell his product cheaper provided 15% bonds are also paid with rest of cash money by the customer SEE THE NEXT REGISTRATION FOR FARTHER EXPLANATION 15 %BONDS .This will apply to all goods in private sector and does not apply to the government sector. This is a big incentive to accept bonds in the private sector as the business accepting more bonds will have more business than the trader not accepting the bonds so the bonds market will multiply and there will be a constant need for bonds in the open market.
3. Third type of registration will be of $100000 which will entitle the business to sell its products through USMF. The value of merchandise sold through this source will help the business to get the 5 bond per dollar rate equal to the amount sold or opt for the duty free option equal the amount sold. But with one condition of surrendering 15% bonds at each sale in dollars
EXAMPLE;
MERCHANDISED SOLD THROUGH USMF $1000. BONDS SURRENDERED 150 ARE DEPOSITED IN STATE ACCOUNT TO BE SOLD AGAIN SO THE CYCLE OF BONDS IS ESTABLISHED .A receipt of bonds surrendered is obtained from USMF for evidence of sale of merchandise and this receipt will entitle the traders to get cheep bonds or the duty free option through out the year BUT THE SAME RECEIPT CAN BE USED ONCE ONLY.
WHAT IS THE BENEFIT TO BUSINESS?
1. CHEEP BONDS THROUGH OUT THE YEAR
2. DUTY FREE OPTION WILL HELP INDUSTRY.
3. The quota which can be sold is ten times the amount of Registration but not more unless the registration fee is increased. Now all the business will opt for this registration in order to reduce the cost of production. These 15% bonds the business will get back through a chain of dealers sub dealers and ultimately the customer will pay this bond portion as he will get the end product very cheep because of tremendous cut in the cost of production by the factors already mentioned. This will replace the GST or the VAT or the two price system seen all over USA . Almost every body will sell their product through this channel as it will be much costlier to sell the product out side this system as cheap bonds are not available otherwise.
According to rough estimate at least $10 trillion transactions are carried out every day in US and at each transaction 15% bonds are being surrendered, the price 15 bonds is $3. So 3% of 10 trillion will be $300 billion which goes into government account without any compulsion every day (UNBELIEVABLE) this is the third flood gate of money AND IS CALLED THE GOLD MINE
4 Now the state is sitting in the driving seat and all the money in banks of private sector have transferred into government account and banks are no more the lenders but are borrower from the state which is the only source left and will invest in business with sound feasibility study checked by the state bank. The state will offer to invest 80% and the bank will bring investor who is willing to pool rest 20%. This 20 % will be deposited in the bank and the bank will oversee the running the business, running expenses will be given to the investor from its share of 20%. There will be no collateral and share of the profit and loss will be shared in the ratio of 60 and 40. The bank will share the 60% with the investor and 40% will go to state funds and the state will provide every thing under its control below cost which will farther reduce the cost of production and at the same time will MARKEDLY improve the profit margins OF ALL THE BUSINESSES. No major business can refuse this offer. Any bank showing repeated loss will go out of business as there will be no more funds available from the government source and all other interest based sources are not available any more. Interest based banking is gone for ever or it may be at a very small scale and the state will not offer debts on interest as these are not any more profitable and risk free as there is no collateral . The amount of profit government will share will be unimaginable and this is the 5th flood gate opened
THEN WHY NOT INVEST ON PROFIT AND LOSS SHARING BASIS
Last but not the least government will acquire all the land on lease without any force and will provide all the needs to the formers THROUGH CORPORATE FARMING SECTOR HIRED BY THE STATE below cost and will become the shareholder according to the mutual contract with the land owner this is the 6th flood gate of money.
DRUG ABUSE ELIMINATED
When all the possible land is being cultivated by best agriculture engineers there will be much better yield and much more profit to land owner then who will not join hands with the government.
THE OBVIOUS BENEFIT WILL BE THERE WILL BE NO MORE POPPY CULTIVATION IN COUNTRIES WHICH ARE POOR AND LARGELY DEPEND ON THE POPPY CROP. NOW THERE IS NO MORE POPPY AND NO MORE DRUGS
All the above claims have been proved to be true except the terrorism.
HOW TERRORISM WILL BE ELIMINATED.
We have to look at root cause and is the POVERTY and NOT the religion which is being falsely blamed .The going rate for a suicide bomber is $1000 in Pakistan Iraq and in Afghanistan .Can one believe that any one having at least two meals a day will blow himself ?Never the areas of the countries where these attacks are happening are extremely poor and the extremist elements who themselves are or were poor exploit these very poor people to carryout attacks for money to save their families from dying from hunger and is open secret. Osama Bin Laden has large force that is recruited from poor areas as there in no job anywhere and he provides these raw recruits with only food and shelter and at same time brainwash them and train some of them to carry out these attacks by giving them enough money in their lives to support their dependents. You might mention few isolated cases of being well to do and still carried out these attacks. Once the poverty is removed in these areas by implementing this system these attacks will come to an end immediately. This system is not only meant for USA but will be easily applicable to every country.
The Jews are our undoing.
Percy you took the words out of my mouth. I cant stand the army of so called professionals jumping now into our basket while the same shit heads did laugh arrogantly even until last week. Hope those fake bros disappear soon because we needed them all 2 or even 3 years back when it was already clear like water that the FED must close down and all backyard monsters into jail forever. We know much longer than this but 3 years back we had the chance to assist our governments everywhere to swap system without war, without manipulations and without hoax and superstition re 2010. Now they use 2010 to distract and pakalert should help that the ancient calendars are not misunderstood into sort of end of the world crap.
Increasing war zones, chem attacks, etc just is the same distraction they need to get away with it, so help everybody that the folks not running into suicide on top of it because they dont understand the language of ancient astrological cicles. The big party of ALL churches has to be stopped, non of them is true but since they all copied from ancient astrology inventing persons and stories around it it is also very logic that more or less same time prediction is getting into place.
This is not news to those of us following this for over 6 years now. The only thing we couldn’t predict is WHEN THE TRAITORS CALLED INTERNATIONAL BANKERS AND FUND MANAGERS would lower the boom AFTER THEY EXTRACTED as much wealth as they could during hte process.
SO LETS BE CLEAR INTERNATIONALLY, SHALL WE???? These people who have done this are TRAITORS. Lets also be clear this IS WAR AGAINST THE PEOPLE OF THE GLOBE…. lets also be clear, THEY ARE THE ENEMY, THEY KNEW WHAT THEY WERE DOING TO GLOBALIZE and the cost to the people has been dear.
THIS IS TREASON ON EVERY LEVEL, CRIMES AGAINST HUMANITY INTERNATIONALLY, AND A NUREMBER TRIAL OFFENCE, AND DEATH PENALTY TO ALL THOSE WHO PARTOOK AND ALLOWED THEMSELVES TO BE USED TO SUPPORT AND COVER THIS UP.
It is time the people of the world took action within each of their countries to HAVE A WORLD WAR AGAINST THE INTERNATIONAL BANKERS, NEOCONS, FASCISTS, AND CORPORATE CEO’S.
The rest of us need to talk with each other across national boundaries and make decisions for ourselves and here is my suggestion.
If you want to stop this before it gets to a nuke world war, then we have to do the following:
1. Once this war looks like its for real, then we each within our nations have to take up arms against the bankers, foreign interests and collusion participants and do so quickly. That is the way it has to happen if we are going to stop this early and before the go underground into their bunkers. Don’t believe me? Here it is…
http://projectcamelot.org/norway.html
2. Once we have seriously taken out the enemy who are very small in numbers so we can do it, we just need the will and understanding of who the real enemy is in all of this, then we, as people of our nation, can send a delegation to each other to plan on how to stop any further movement toward a world war. THIS IS IMPERATIVE, SINCE ITS UNLIKELY ANY HUMANS WILL SURVIVE SUCH A WAR.
3. Then we must sign a pact that no country will ever allow any banking interests, neocons, or reps of Israel to ever occupy positions of power ever again within each nation. This is imperative or we will go through this every 70 years or so. It must never happen again. We must nationalize all banking, currency and credit. Cancel all trade agreements and redraft for ‘FAIR AND FREE TRADE’ instead of banker managed trade.
4. We must also begin the process of disarming all over the globe, except for the citizens of each nation who will become the militias of the future to protect against any such occurance ever again, NO MORE GLOBAL CONTROL BY A HANDFULL OF PSYCHOPATHS.
5. We must record all of this into a master history book to be preserved for future generations and educate our youth every generation as to how we almost lost the nations, cultures, religions and soveriegnty and who the players were who did it.
I am but one person with ideas, but many talking can come up with better ones than I have offered. I SAY NOW, WE HAVE NO CHOICE, IF WE EXPECT TO SURVIVE THESE SOCIOPATHS AND MAKE IT INTO THE FUTURE FOR OUR NATIONS AND OUR PEOPLE.
Please feel free to add to the list, change it, BUT WE MUST ALL BE COMMITTED TO SOMETHING WE CAN DO TOGETHER AS 6.5 BILLION PEOPLE AGAINST ONLY ABOUT 6000 OF THE INTERNATIONALISTS.