The Classic Liberal Blog

I prefer to have China's bubble than the bubble in the U.S., that's for sure. In the U.S. the bubble is a credit bubble, government debt bubble, that in my opinion will never be repaid except in worthless U.S. dollars. And so if you ask me about the correction in the gold market, yeah, for sure, there will be corrections. We already corrected more than 10% from the peak and I think the correction could last somewhat longer, but when I look at Mr. Obama, and Mr. Bernanke, and Mr. Tim Geithner and Larry Summers, the one thing I will never do in my life, is to sell my gold.

I believe all governments will eventually go bankrupt, except probably in emerging economies. They're in better shape, because they're a smaller part of the total economy, and their economies are not as leveraged as in the Western world. And most importantly, for example in the whole of Asia, the governments have no unfunded liabilities for health care like in the U.S., and social security ...

I'm convinced that the U.S. will go bankrupt, but not tomorrow, and before they go bankrupt they'll print money, and then we get very high inflation rates, then you get the depression with high inflation, and eventually they'll go to war. - Marc Faber

Some people don't like Marc Faber, because hearing the truth is too painful. After all, it's much easier to believe in rainbows and unicorns.

You, me, a country, nor anyone else can print their way to financial success. I highly recommend heeding Faber's words.