Dr. Doom: We’re In For An Epic Economic Collapse Where Not Even The Wealthy Are Safe
What this covers
In this stark and sometimes disturbing discussion, Jimmy Connor speaks with “Dr. Doom” Marc Faber, who offers his brutally honest assessment of the global and U.S. economies, asserting that while financial markets may be at all-time highs, the real economy is struggling, particularly for the middle and lower classes. He says the severe wealth inequality exacerbated by central bank interest policies that — contrary to popular belief, actually inject more liquidity into the hands of the wealthy — even as the middle class is about to be hit by what he says is an unfair tax due to tariffs. Faber also goes hard at politicians and weighs in on Elon Musk’s new party, while discussing the decline of the U.S. dollar's long-term purchasing power, preferring precious metals like gold, silver, and platinum as stable anchors against currency debasement. Ultimately, Faber warned that the current path of excessive government intervention and wealth disparity is creating an "unstable environment" that could eventually have severe repercussions, even for the super-rich.
Key Takeaways: - Why The Financial Markets are Not the Economy - Manufacturing Hasn’t Shrunk in the U.S., the Jobs Have - Elon Musk’s Party Could Sway Elections - Monetary Easing Helps the Wealthy - Why Gold and Precious Metals are the Safe Bet - Wealth Inequality is at an All-Time High and Will Lead to Disaster, Even for the Rich
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Chapters:0:30 – How’s Life in Thailand for Marc Faber? 2:33 – Is a Global Economic Storm Brewing? 14:40 – The Mystery Behind America’s Job Market 20:18 – How Clueless Politicians End Up in Power 23:17 – What’s Really Ahead for the U.S. Economy? 27:38 – Can Elon Musk Fix U.S. Politics? 29:29 – Why Banks Are Booming in a Supposed Crisis 34:01 – Is the Dollar’s Dominance Coming to an End?
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Mark Faber argues that central bank monetary easing has created a two-tier economy where financial assets and the wealthy prosper while ordinary households suffer declining living standards, and that this wealth inequality—exacerbated by Trump's policies on tariffs and deficit spending—will eventually destabilize society and harm even the super-rich.
- Interest rate increases don't tighten liquidity for the wealthy; they concentrate money flow to financial intermediaries first, leaving ordinary people worse off
- Tariffs function as regressive taxes that disproportionately burden middle and working classes while the rich escape via corporate structures and tax havens
- The US dollar's purchasing power has declined massively against gold over 50+ years, and Trump's disregard for debt repayment will accelerate this decline
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Manufacturing employment has shrunk in the US due to automation and efficiency gains, not because manufacturing has shrunk—a distinction similar to how agricultural employment collapsed from 80% of population in 19th century to near zero due to tractors and combines, yet one farmer today can farm as much land as 3,000 people could before.
“one always says manufacturing has shrunk in the US. This is incorrect. The manufacturing jobs have shrunk. They have become smaller because of automation and efficiency gains. And I suppose like agriculture, agriculture used to occupy 80% of the population in the 19th century. But when they invented the tractor and the combine machines and all the agricultural machines, one farmer today, he can alone farm as much as 3,000 people before.”
The service sector has expanded dramatically because typical modern couples both work and no longer perform household services themselves (cooking, cleaning, gardening) that previous generations did, instead outsourcing to restaurants, food delivery, and cleaning services.
“a lot of people use services which previously they uh performed themselves. Say a household, a typical household, say my grandparents household was the man works. The woman is at home and takes care of the household...A young couple doesn't have that lifestyle anymore. Both people uh work and when they go home they order food online or or they go to restaurant...And so the service sector has expanded dramatically.”
The US dollar's recent strength was primarily because other central banks (Japan, Switzerland) performed worse than the Fed, maintaining even more negative real interest rates and lower policy rates, making the dollar relatively stronger by comparison rather than absolutely strong.
“Part of the strength of the dollar was that other central banks have been even worse than the US central bank. I mean, you take Japan, you have zero interest rates to speak of, but the cost of living increases of around 3%. So, you have strongly negative interest rates. And the same in Switzerland uh we have zero interest rates and uh when I read service by McKenzie and all these agencies that know everything in the world then uh Zurich Geneva burn are among the top 10 most expensive cities in the world.”
Protectionism and tariffs are economically irrational because manufacturing costs are much lower in countries like China, Vietnam, and South Korea than in America, and attempting to manufacture goods domestically would be equivalent to trying to produce wines in Alaska instead of in climates suited to viticulture.
“Why you would want to manufacture a TV set in America where the cost of manufacturing would be much higher than buy the TV set from Taiwan, South Korea, Vietnam, China. That I is mindboggling. is like someone in Alaska saying, "I want to produce wines in Alaska." When the wines can be produced in Morocco, in Algeria, in Italy, in Spain, wherever, where the climatic conditions are much better for the production of wines”
Free markets provide incentives for people to work hard (earning more) or work less (earning less), creating strong incentives for businesses to innovate and improve, because the threat of bankruptcy forces companies to constantly develop new products to avoid failure.
“the free market gives incentives uh to people to work to move and if they work hard they earn more. If they work less then they earn less and so that is a huge incentive for business to prosper and the huge incentive is of course failure. When people can go bankrupt, when companies go bankrupt, then they hustle to essentially innovate not to go bankrupt. In other words, they develop constantly new products and so forth.”
The distinction between financial markets and underlying economy is critical; while financial markets may be strong, the real economy (household prosperity, employment, housing affordability) can be simultaneously weak due to unequal distribution of monetary stimulus benefits.
“we have to distinguish between the economy and financial markets. The economy globally is not doing particularly well.”
Low goods price inflation despite monetary expansion is explained by the opening of China and other emerging economies that increased supply and kept goods prices low, allowing monetary expansion to inflate asset prices and corporate profits rather than goods prices.
“this wouldn't be the case but it's the case because of the opening of China and other emerging economies that have kept uh goods price inflation low. There's very little goods price inflation in the system. There's a lot of inflation. I mean, price increases in industries that are regulated by the government that that goes up in price.”
The Fed and other central banks have created a huge wealth inequality and a two-tier economy where the economy of the rich is doing wonderfully well while the economy of the typical American and typical Western citizen is doing badly.
“This is what the Fed and other central banks have created. This huge wealth inequality and the two tier economy, the economy of the rich is doing wonderfully well. The economy of the typical American, the typical citizen in the Western world is doing badly.”
Tariffs are a tax that the government collects from ordinary people, and the rich are hit least by tariffs because they buy luxury items (private planes, yachts) through corporations in tax-free havens and can smuggle expensive goods through customs without inspection.
“a tariff is a tax. nothing else is a tax that the government steals from ordinary people. The rich people for them to buy a mobile phone, for them to buy grocery is nothing in comparison to their income. It doesn't show up in the balance sheet in their expenditures. What shows up is the ownership of a private plane, the ownership of a yacht, and so forth. That shows up. But these items are frequently bought in the name of a corporation located in a tax-free haven in the Cayman Islands or in Bermuda or wherever. And so the rich people are hit the least by the tariffs. In fact, if you have a private plane, you can smuggle in your cognac and your red wines and whisies, the expensive stuff. Uh, nobody checks really at the custom.”
Small businesses face genuine liquidity tightness because banks will not lend to them when business is weak, as it violates basic logic to ask lenders for money while simultaneously claiming business is bad, making small business lending a losing proposition for banks.
“Now there may be tightness of liquidity for the small businessman. He has a small shop. He knocks on the door of a bank and says, 'I want a loan because business is bad.' Well, it's very bad common sense to ask someone to lend you money and tell him that your business is bad. You should say, 'My business is brilliant. Please lend me money.' But nobody will lend the small guy money. Is a waste of time.”
Manufacturing employment has shrunk due to automation and efficiency gains rather than absolute decline in manufacturing output, similar to how agricultural machinery allowed one farmer to produce as much as 3,000 people could previously.
“one always says manufacturing has shrunk in the US. This is incorrect. The manufacturing jobs have shrunk. They have become smaller because of automation and efficiency gains. And I suppose like agriculture, agriculture used to occupy 80% of the population in the 19th century. But when they invented the tractor and the combine machines and all the agricultural machines, one farmer today, he can alone farm as much as 3,000 people before.”
Young people are suffering from high cost of living, and housing in America is at the most unaffordable level it has ever been when measured by the ratio of typical house price to median income.
“young people, they are suffering from high cost of living. In other words, whereas their parents were able to buy a house at a reasonable price, nowadays we have precise statistics that housing in America is at the most uh unaffordable level it's ever been. We measure affordability of the price of a typical house in America compared to the typical income, the median income. And the affordability is very low.”
Amazon has increased the productivity of most people because customers can order goods without wasting time going into shops, which is a form of modern productivity improvement.
“companies like Amazon have actually increased the productivity of most people because they can order goods without wasting time and going into shop and so forth.”
Price increases occur in government-regulated industries, which experience significant inflation unlike goods prices, making inflation selective rather than uniform.
“There's a lot of inflation. I mean, price increases in industries that are regulated by the government that that goes up in price. That I assure you.”
Banks will not lend to small business owners who admit their business is struggling, but will lend to individuals with credit cards because banks can seize the borrower's assets if they don't pay.
“He has a small shop. He knocks on the door of a bank and says, "I want a loan because business is bad." Well, it's very bad common sense to ask someone to lend you money and tell him that your business is bad...But nobody will lend the small guy money. Is a waste of time...But to lend money to the small businessman is a losing proposition...You lend money to an individual who has a credit card, then you can go after his assets.”
Bezos has done a great job enabling people who live anywhere in the world to buy products at reasonable prices through Amazon, and while other websites might be slightly cheaper, Amazon is reliable.
“Bezos has done a if you have to judge socially Bezos what has he done? He's done a great job enabling people who live anywhere in the world to buy his products and at a reasonable price. I'm sure there are, you know, websites that can sell things maybe a bit cheaper than Amazon, but Amazon is reliable.”
19th century 'robber barons' like Carnegie, Rockefeller, and railroad builders lowered transportation costs by 80% from New York to San Francisco, taking their own money and risks to build railroads.
“The robber barons were people like Carnegie in steel and uh other people in railroads and uh in coal mining and in food packaging and so forth...what did these people do? They lowered the transportation cost from New York to San Francisco by 80% by building railroads. They took their own money and they took their own risks and they raised money and so forth.”
When created money enters the economy, it flows first to the banking industry, insurance industry, and financial intermediaries before reaching ordinary people through the credit system, with ordinary people receiving only about 3% of the total money created at the top.
“when the Fed creates money? Who gets the first money balloon? It's the banking industry, the insurance industry and then it flows down into the economy and into the credit system of ordinary people. But the ordinary people are the at the low end. They get say 3% of what of the money that was created at the top.”
Switzerland has zero interest rates but Zurich, Geneva, and Bern rank among the world's top 10 most expensive cities, contradicting the Swiss government's claim of low inflation and revealing measurement methodology problems.
“we have zero interest rates and uh when I read service by McKenzie and all these agencies that know everything in the world then uh Zurich Geneva burn are among the top 10 most expensive cities in the world. Do you understand? But the Swiss government says we have no inflation.”
An increase in interest rates can actually create additional liquidity when money is concentrated among wealthy people, rather than tightening monetary conditions, because wealthy people then have greater cash flow and purchasing power from higher deposit rates.
“the Fed and other central banks have been increasing interest rates. Now, people including economies, they consider an increase in interest rates as a tightening move in monetary conditions. But I think we have to redefine that uh that sort because you can have an increase in interest rates that creates additional liquidity because the money is concentrated among wealthy people.”
Wealth inequality created by Federal Reserve money printing will eventually harm even the super-wealthy class by creating unstable social and political environment threatening their assets and security.
“the Fed by printing money has made things much worse. And uh it will will lead to an unstable environment that will hit the class of the super rich very hard eventually. Eventually.”
Mark opposes tariffs both on economic grounds (they are regressive taxation) and on grounds that tariffs lead to protectionism spiral where other countries retaliate, reducing world trade and harming all trading nations.
“I oppose it on both economic uh re for economic reasons that it's a tax increase that is very unfair and also on u on grounds that tariffs lead to protectionism and then other countries impose tariffs as well. It reduces world trade”
An increase in interest rates can create additional liquidity because the money is concentrated among wealthy people, and therefore higher rates should not automatically be considered a tightening of monetary conditions.
“the Fed and other central banks have been increasing interest rates. Now, people including economies, they consider an increase in interest rates as a tightening move in monetary conditions. But I think we have to redefine that uh that sort because you can have an increase in interest rates that creates additional liquidity because the money is concentrated among wealthy people.”
In business, an incompetent person is easily removed, but in politics, incompetent people are 'shot upstairs' and promoted to higher positions repeatedly, as exemplified by European Union leadership.
“in business in general someone is completely incapable to ease out. But in politics they're shot upstairs. You look at Leaden in uh in Europe, the leader of the EU, she was completely incompetent in many different positions. And what was the result? She went higher and higher. Is I mean amazing.”
When the Fed creates money, it first goes to the banking and insurance industry, then flows down through the credit system, with ordinary people at the low end receiving only about 3% of the newly created money.
“when the Fed creates money? Who gets the first money balloon? It's the banking industry, the insurance industry and then it flows down into the economy and into the credit system of ordinary people. But the ordinary people are the at the low end. They get say 3% of what of the money that was created at the top.”
Newly created money boosts the profits of financial intermediaries and corporations partly because of an 'illusion of wealth creation' in profit reports, but this doesn't reflect actual value creation.
“the money that is being created at the Fed boost the profits of the financial intermediaries, the financiers as we call them, they do very well and then corporate profits do very well because they inflate the under the illusion of wealth Wales is being created in terms of profits”
Government subsidies for companies that would otherwise fail destroy market efficiency because they prevent failure, eventually leading to a system where every company is subsidized and innovation ceases.
“Under this influence, it's now no longer acceptable that companies go bankrupt. So, the government steps in with subsidies and so forth. This is, of course, a complete disaster because eventually every company will be subsidized.”
Gold and other precious metals (silver, platinum) should be viewed as anchors of monetary stability rather than commodities with volatile prices; the dollar's purchasing power declined massively from 1970 to present (from $35/oz gold to $3,300/oz) indicating currency depreciation not gold price inflation.
“I look at say gold, silver, platinum as an anchor of monetary stability. So when I started to work in 1970, $35 bought one ounce of gold. Now I need 3,300 whatever. So tell me, did gold go up or the value of the dollar went down against the anchor of stability which is the US dollar.”
When Faber started working in 1970, $35 bought one ounce of gold; now it requires $3,300, indicating that the purchasing power of the dollar has declined massively, not that gold increased in value.
“I look at say gold, silver, platinum as an anchor of monetary stability. So when I started to work in 1970, $35 bought one ounce of gold. Now I need 3,300 whatever. So tell me, did gold go up or the value of the dollar went down against the anchor of stability which is the US dollar...the gold price in my view you can say gold went up and I say not gold was stable but the value of the dollar the purchasing power of the dollar has gone down massively”
The global economy is not doing particularly well, and typical households in Canada, Great Britain, America, and Western democracies generally are suffering with declining standards of living or drawing down savings to maintain their current standard of living.
“The economy globally is not doing particularly well... the typical household in Canada, if we look at the typical household in Great Britain and in the in America and so forth and in western democracies in general, I can in good conscience say that the typical household is suffering. his standard of living has gone down or he is living off his savings.”
The economy globally is not doing particularly well, and the typical household in Canada, Great Britain, America, and Western democracies in general is suffering, with standard of living either gone down or being maintained by drawing down savings.
“The economy globally is not doing particularly well. I mean we also have to define what are we discussing when we talk about the economy. Uh the economy is basically the prosperity and the well-being of many different households. If we look at the typical household in Canada, if we look at the typical household in Great Britain and in the in America and so forth and in western democracies in general, I can in good conscience say that the typical household is suffering. his standard of living has gone down or he is living off his savings.”
The best government is one that does nothing, and politicians who do nothing are the best, consistent with Adam Smith's principle and 19th century experience that free markets with little government perform best.
“politicians that don't do anything are the best because the best as we know from Adam Smith and from the experience of the 19th century is little government and a free market.”
A small party can have deciding influence by siding with one political side or the other, allowing it to blackmail both sides, which is significant when both sides are not particularly competent.
“he can have a you understand he can have a deciding influence. He can have a very small party and he can side with one side or the other side and by doing that he can have great influence on political events in the US. He can basically blackmail each side and each side is not particularly competent as we have seen now.”
Housing affordability in America is at the most unaffordable level it has ever been, measured by comparing the price of a typical house in America to the typical median income.
“housing in America is at the most uh unaffordable level it's ever been. We measure affordability of the price of a typical house in America compared to the typical income, the median income. And the affordability is very low.”
The US unemployment rate appears low because many people don't file for unemployment benefits; instead they receive other benefits that are superior to unemployment benefits.
“it would seem to me that uh in the US the unemployment rate is low because a lot of people don't file for unemployment benefits because they get other benefits uh that are superior to unemployment benefits.”
Household behavior has shifted from traditional production of services (cooking, housekeeping, gardening) to purchasing them, with dual-income couples ordering food online and dining out rather than cooking home meals, dramatically expanding the service sector.
“a lot of people use services which previously they uh performed themselves. Say a household, a typical household, say my grandparents household was the man works. The woman is at home... My grandmother... started to cook for lunch. It took about three hours... A young couple doesn't have that lifestyle anymore. Both people uh work and when they go home they order food online or or they go to restaurant.”
Modern companies like Amazon have increased productivity compared to 19th century robber barons, though perhaps not by the same scale, by enabling people to order goods without wasting time shopping in stores.
“I wished we had the robber barons today and we have to some extent uh except in many ways their productivity improvements are not what it was in the 19th century. But I think uh companies like Amazon have actually increased the productivity of most people because they can order goods without wasting time and going into shop and so forth.”
Failure and bankruptcy are crucial incentive mechanisms that force businesses to innovate and develop new products to avoid collapse, but modern socialist-influenced policies have made it 'no longer acceptable' for companies to go bankrupt, leading governments to subsidize failing companies instead.
“the huge incentive is of course failure. When people can go bankrupt, when companies go bankrupt, then they hustle to essentially innovate not to go bankrupt. In other words, they develop constantly new products and so forth. But nowadays, the system under the socialists and the world improvers, we have now this new class of people. Anyway, under this influence, it's now no longer acceptable that companies go bankrupt. So, the government steps in with subsidies”
The Federal Reserve and other central banks have created massive wealth inequality and a two-tier economy where the economy of the rich is doing wonderfully well while the economy of the typical American and citizen in the Western world is doing badly through their monetary policies.
“But this is what the Fed and other central banks have created. This huge wealth inequality and the two tier economy, the economy of the rich is doing wonderfully well. The economy of the typical American, the typical citizen in the Western world is doing badly.”
Tariffs are taxes on ordinary people, not on the wealthy, because ordinary people purchase groceries and goods from department stores and online retailers where tariffs directly increase prices, while wealthy people's consumption represents such a small portion of their income that tariffs are negligible.
“Because ordinary people buy groceries, they buy goods, TV sets and headphones and so forth in department stores or they order it online at Amazon and so forth. They will pay the tariffs. This that a tariff is a tax. nothing else is a tax that the government steals from ordinary people. The rich people for them to buy a mobile phone, for them to buy grocery is nothing in comparison to their income. It doesn't show up in the balance sheet in their expenditures.”
There is significant inflation in regulated industries (government-regulated sectors) with prices rising substantially, but this is masked by low goods price inflation, creating an incomplete picture of true inflation in the economy.
“There's a lot of inflation. I mean, price increases in industries that are regulated by the government that that goes up in price. That I assure you.”
US unemployment rates appear low because many people do not file for unemployment benefits because they qualify for other benefits (welfare, disability, etc.) that are superior to unemployment benefits.
“It would seem to me that uh in the US the unemployment rate is low because a lot of people don't file for unemployment benefits because they get other benefits uh that are superior to unemployment benefits.”
Japan and Switzerland have negative real interest rates (0% nominal rates with 3%+ inflation) despite claiming low inflation, demonstrating that conventional inflation measurement is fundamentally flawed and doesn't capture true cost-of-living increases.
“You take Japan, you have zero interest rates to speak of, but the cost of living increases of around 3%. So, you have strongly negative interest rates. And the same in Switzerland uh we have zero interest rates and uh when I read service by McKenzie and all these agencies that know everything in the world then uh Zurich Geneva burn are among the top 10 most expensive cities in the world.”
Gold, silver, and platinum should be viewed as anchors of monetary stability, and all major currencies have declined against these precious metals as stores of value.
“I look at say gold, silver, platinum as an anchor of monetary stability...and I think it will continue. In fact, my argument is, dear God in heaven, please keep Donald Trump alive for as long as is possible because he's a present from you for us gold holders.”
Politicians who want to run for public office possess narcissistic qualities, suggesting that the selection mechanism for political leadership attracts personality types unsuited to governance.
“How do you explain that? It's almost like these individuals that want for p run for public office, they have some sort of, I don't know, narcissistic qualities, right?”
The wealth of the richest 0.1% (exemplified by Jeff Bezos) should be in private hands with entrepreneurs because the alternative of government controlling such wealth would be worse.
“Is it the economy of the 0.1% of the richest people of Bezos? And I mean, I'm happy that he has the money. The worst would be that uh someone in government would have that kind of money. You understand? I like an entrepreneur to look after money. I don't like the government to look after money.”
Trump has no regard for debt repayment, as demonstrated repeatedly in his business career, making him unsuitable to borrow money while he will borrow more than anyone else would have done.
“Mr. Trump has no regard for debts and he has no regard for paying debts. That is the crucial issue...I if you uh have people that disregard repaying debts as Mr. Trump has proven repeatedly, not once, repeatedly in his business career, then he's unsuitable to borrow money. But he will borrow money more than anyone else would have done.”
Money created by the Fed boosts financial intermediary and corporate profits through what appears to be real wealth creation in terms of profits, but this is an illusion caused by the opening of China and other emerging economies that have kept goods price inflation low despite massive monetary expansion.
“the money that is being created at the Fed boost the profits of the financial intermediaries, the financiers as we call them, they do very well and then corporate profits do very well because they inflate the under the illusion of wealth. Wales is being created in terms of profits and and this wouldn't be the case but it's the case because of the opening of China and other emerging economies that have kept uh goods price inflation low.”
The market for equities in the US is highly priced considering the geopolitical conditions, and well-informed observers believe we are headed into World War III with dangerous social environment conditions.
“The market for equities in the US is highly priced considering the geopolitical conditions. I mean our friends who are well informed they think we're headed into World War II and so was and I think the social environment is actually dangerous.”
Democratic survival is questionable because democratic systems consistently elevate incompetent people to leadership while forcing out competent professionals, inverting the meritocratic principle and ensuring poor outcomes.
“I seriously question that democracies will survive. I don't think so. They all bring in in business in general someone is completely incapable to ease out. But in politics they're shot upstairs.”
Economic think tanks and agencies in America have calculated that under Trump's policies the deficit will go up more than it otherwise would have been.
“there are agencies in America, economic think tanks and so forth that have calculated that under Mr. Trump's policies the deficit will go up more than uh otherwise would have been the case.”
Trump is 'a present from God' and 'a gift to the world for people that own gold' because his policies will accelerate the decline of the dollar's purchasing power and drive precious metal prices higher.
“my argument is, dear God in heaven, please keep Donald Trump alive for as long as is possible because he's a present from you for us gold holders. He's a gift to the world for people that own gold.”
The decline in purchasing power of the US dollar will continue for the next 100 years and under Trump this decline will increase, not diminish, due to his indifference to deficits and debt.
“the direction of the purchasing power of the dollar has to be like in the last 100 years down and under Trump this decline in the purchasing power will in my opinion increase not diminish”
Elon Musk's wealth comes mostly from government subsidies extracted from the government, which is clever but makes his criticism of government somewhat hypocritical.
“His wealth comes mostly from subsidies. and he attacks the government. I like that. It's a very bold move by him. He stands to lose a lot.”
19th century 'robber barons' (Carnegie, Rockefeller, railroad and coal industrialists) actually lowered transportation costs from New York to San Francisco by 80% through railroad investment using their own capital and risk, creating enormous public value.
“The robber barons were people like Carnegie in steel and uh other people in railroads and uh in coal mining... These were the Robert Baronss, the Rockefellers also... what did these people do? They lowered the transportation cost from New York to San Francisco by 80% by building railroads. They took their own money and they took their own risks”
US unemployment rate for June was 4.1% down from 4.2%, and these unemployment numbers are hanging in quite well in the US, creating a puzzle about why the US is not showing the same economic weakness as Canada.
“we just saw non-farm numbers for the month of June. The unemployment rate was 4.1% down from 4.2%. And I have to admit, these unemployment numbers are hanging in quite well in the US.”
In the 19th century before central banking, America grew from 4 million people in 1800 to 80 million in 1900 while maintaining stable prices (no inflation), demonstrating that prosperity is achievable without central bank monetary expansion.
“the 19th century we didn't have a central bank and what happened the country America grew from 4 million people in 1800 to 80 million people in 1900 and in 1900 the price level was no higher than in 1800.”
Individuals should own precious metals as portfolio diversification, but not 100% of assets; precious metals are best held outside the United States to avoid government confiscation risks.
“To answer your question, I think individuals should still own precious metals. not 100% the other things that will do better than precious metals but uh I think as a reserve currency if you have a portfolio of different assets I would own some precious metals and not store them in the United States not in the US elsewhere”
In the 19th century without a central bank, America grew from 4 million people in 1800 to 80 million people in 1900, and the price level was no higher in 1900 than in 1800.
“in the 19th century we didn't have a central bank and what happened the country America grew from 4 million people in 1800 to 80 million people in 1900 and in 1900 the price level was no higher than in 1800.”
It makes no economic sense to manufacture consumer goods like televisions in America where manufacturing costs are much higher than in Taiwan, South Korea, Vietnam, and China, an analogy similar to trying to produce wine in Alaska rather than in climatically suitable locations like Morocco, Algeria, Italy, and Spain.
“I don't understand the reasoning of these protectionist people. Why you would want to manufacture a TV set in America where the cost of manufacturing would be much higher than buy the TV set from Taiwan, South Korea, Vietnam, China. That I is mindboggling. is like someone in Alaska saying, 'I want to produce wines in Alaska.' When the wines can be produced in Morocco, in Algeria, in Italy, in Spain, wherever, where the climatic conditions are much better for the production of wines”
Canada's economy has been stagnant for the last 10 years under a liberal government, and this economic stagnation is connected to poor political leadership quality.
“we've had this liberal government here for the last 10 years, and our economy has basically been stagnant for the last 10 years”
Jeff Bezos dropping $48 million on his wedding in Venice exemplifies extreme wealth, while ordinary people in the US and Canada work two or three jobs just to get by.
“you look at Jeff Bezos who just dropped $48 million on his wedding in Venice. Okay, that's one extreme. And then at the other extreme, you got people in in the US and in Canada, they're working two or three jobs just to get by.”
Major companies like Walmart, McDonald's, and Starbucks came out with profit warnings saying people aren't coming into their stores and aren't spending as much money due to uncertainty.
“We saw many companies, including Walmart, McDonald's, the Starbucks. So many companies came out with profit warnings saying people just aren't coming into their stores. They're just not spending as much money, and they're not because of all this uncertainty.”
The unemployment rate in Canada is 7%; in Ontario (population 15 million) it is 8%; in Toronto it is approaching 10%; and youth unemployment (15-24) in Canada is 14%, a level not seen since the 1990s.
“Uh the unemployment rate in Canada is 7%. In Ontario, which is the largest uh province in Canada, it's population 15 million, the unemployment rate is 8%. In the city of Toronto, it's approaching 10%. Youth unemployment, which is 15 to 24 in the country of Canada, it's 14% mark. We haven't seen that since the 1990s.”
Thailand is often labeled a 'failed state' by economists and academics because it has not grown much in recent years and has fallen behind Singapore and Malaysia in economic performance and education, but this designation is problematic because many people choose to live and retire there, suggesting the definition of 'failed state' needs reconsideration.
“people always say that uh or the economists and the academics they say that Thailand is a failed state because in the last few years the the country hasn't grown much and uh it hasn't done well economically compared compared to say cities like Singapore or Malaysia. Uh compared to Malaysia, the country has fallen back in terms of education and so forth and so on. But despite being a failed state, it's remarkable that so many people like to be in Thailand.”
The platinum market is tiny compared to gold and silver; black rock and two or three other funds could easily accumulate all available platinum and drive prices to a premium over gold where Faber believes they should trade.
“I mean the platinum market is very small. Where's the silver market? When the Hunt brothers in 1979, 1980 squeezed the silver mark, it was a big market, but the platinum market compared to gold and silver is tiny. So if you talk about the dollar, I think the direction of the purchasing power of the dollar has to be like in the last 100 years down...But all you would need is black rock and two or three other funds to accumulate platinum. The treasury in the US could do it. I think the best advice I can give to Russia and to South Africa is to squeeze the platinum market.”
The definition of a 'failed state' is problematic and potentially applies to Western democracies like the US, France, and Germany that are arguably no more successful than countries labeled failed states, particularly given visible dysfunction in leadership and governance.
“So we may have to def define what is a failed state. I mean maybe the US is a failed state. I don't know. Or maybe European democracies are failed states. If I look at France and Germany, then I I don't get the impression that they're very successful societies at the present time.”
Elon Musk's wealth comes mostly from government subsidies rather than genuine entrepreneurship, and he cleverly extracts subsidies from government while simultaneously attacking government, which Faber views as a bold move.
“He was very clever at extracting subsidies from the government. His wealth comes mostly from subsidies. and he attacks the government. I like that. It's a very bold move by him.”
Democratic systems are unlikely to survive because they consistently elevate incompetent people to leadership positions and remove them upward rather than laterally dismissing them, as exemplified by Ursula von der Leyen's promotions despite incompetence in multiple positions.
“I don't think so. They all bring in in business in general someone is completely incapable to ease out. But in politics they're shot upwards. You look at Leaden in uh in Europe, the leader of the EU, she was completely incompetent in many different positions. And what was the result? She went higher and higher. Is I mean amazing. But this is the fact.”
Academics and media principally hate successful entrepreneurs like Bezos because they are successful, whereas academics sit in universities with ordinary salaries and resent people who achieve wealth.
“the media principally and some government officials and the academics the academics of course they hate people like Bezos because he's successful. The academics are sitting in universities. Most of them have a salary but nothing special. They hate successful people.”
Manufacturing employment moving to lower-cost countries like China and Vietnam is a good outcome because production should occur where costs are lowest, and the claim that this represents economic decline is economically unsound.
“the manufacturing employment is going to go down which is a good thing that a lot of things that require work with hands is transferred to China, Vietnam and other countries.”
Faber opposes tariffs on both economic grounds (they are an unfair tax increase) and because they lead to protectionism and reciprocal tariffs from other countries, reducing world trade and creating inefficient production patterns.
“I oppose it on both economic uh re for economic reasons that it's a tax increase that is very unfair and also on u on grounds that tariffs lead to protectionism and then other countries impose tariffs as well. It reduces world trade”
The best government policy is one where politicians 'don't do anything' because historical evidence and Adam Smith demonstrate that free markets with minimal government intervention and the threat of business failure produce the most prosperity and innovation.
“politicians that don't do anything are the best because the best as we know from Adam Smith and from the experience of the 19th century is little government and a free market. And the free market gives incentives uh to people to work to move and if they work hard they earn more. If they work less then they earn less”
Elon Musk is coming out with a new American Party that could have a deciding influence on US politics by being a small party that can side with either Democrats or Republicans, effectively blackmailing both sides.
“So, he's coming out with a new party, the American Party. What are your thoughts? Well, Walter the philosopher and critic said it's very dangerous to be right when the government is wrong. That is my advice to him. I like that. So, but he can have a you understand he can have a deciding influence. He can have a very small party and he can side with one side or the other side and by doing that he can have great influence on political events in the US. He can basically blackmail each side”
The dollar's recent strength was partially due to other central banks being 'even worse' than the US Federal Reserve, such as the Bank of Japan and Swiss National Bank maintaining near-zero rates despite 3% inflation in Japan and high cost of living in Switzerland.
“Part of the strength of the dollar was that other central banks have been even worse than the US central bank. I mean, you take Japan, you have zero interest rates to speak of, but the cost of living increases of around 3%. So, you have strongly negative interest rates. And the same in Switzerland uh we have zero interest rates and uh when I read service by McKenzie and all these agencies that know everything in the world then uh Zurich Geneva burn are among the top 10 most expensive cities in the world.”
Faber is an 'ultra capitalist' who understands and favors wealth inequality, thinking people should be rewarded for working hard, but the current level of inequality created by Fed money printing is excessive.
“The wealth inequality that we have nowadays is not healthy for a society. And I'm an ultra capitalist. I understand the wealth inequality and I favor wealth inequality. I think people should be rewarded who work hard and so forth, but the Fed by printing money has made things much worse.”
Tesla's valuation is in 'bubble territory' when compared to other automobile manufacturers, with nothing special about it other than battery vehicle manufacturing, making it overvalued.
“the value of Tesla is uh in bubble territory. When you compare it to the other automobile manufacturers and so forth, there's nothing special to Tesla. It manufactures a a product with batteries.”
Tesla is losing $50 billion a day in market value, suggesting the stock is in bubble territory relative to other automobile manufacturers.
“it's going to be very distracting. I mean, look at Tesla. Tesla's losing $50 billion a day in market value. Well, the value of Tesla is uh in bubble territory. When you compare it to the other automobile manufacturers and so forth, there's nothing special to Tesla.”
Western democratic leaders (Trudeau, Schultz, and other European leaders) are incompetent, ignorant, and 'mad', making Faber question whether democracies will survive.
“They all cuckoo. You look at M. You look at Schultz in Germany. All these characters, they're mad. They're mad...I seriously question that democracies will survive. I don't think so.”
The market for equities in the US is highly priced considering geopolitical conditions, and well-informed people believe the world is headed toward World War III, suggesting the social environment is dangerous.
“The market for equities in the US is highly priced considering the geopolitical conditions. I mean our friends who are well informed, they think we're headed into World War II and so was and I think the social environment is actually dangerous.”
The economy distinction must be clarified: it could refer to the economy of the top 0.1% (exemplified by Bezos) or the typical economy, and the speaker prefers entrepreneurs like Bezos controlling money over government controlling money.
“I believe I mean we have to define what is the economy. Is it the economy of the 0.1% of the richest people of Bezos? And I mean, I'm happy that he has the money. The worst would be that uh someone in government would have that kind of money. You understand? I like an entrepreneur to look after money. I don't like the government to look after money.”
Housing prices in most cities have been coming down somewhat, particularly condo prices in Vancouver, Toronto, and Montreal, though the affordability issue remains problematic for lower income recipients, middle class, and upper middle class populations.
“That's why the housing industry, the prices are still close to record highs. have been coming down in most cities uh somewhat especially condo prices also in Vancouver and in Toronto and in Montreal. But in general I would say uh the affordability issue is a problem for the lower income recipients and the middle class and the upper middle class.”
Economic think tanks and agencies have calculated that US budget deficits will increase more under Trump's policies than would otherwise be the case, validating Faber's concern about his fiscal impact.
“there are agencies in America, economic think tanks and so forth that have calculated that under Mr. Trump's policies the deficit will go up more than uh otherwise would have been the case.”
Canada's unemployment rate is 7%, Ontario's is 8% (with 15 million population), Toronto's approaches 10%, and youth unemployment (ages 15-24) is 14%, levels not seen since the 1990s, indicating significant labor market weakness.
“the unemployment rate in Canada is 7%. In Ontario, which is the largest uh province in Canada, it's population 15 million, the unemployment rate is 8%. In the city of Toronto, it's approaching 10%. Youth unemployment, which is 15 to 24 in the country of Canada, it's 14% mark. We haven't seen that since the 1990s.”
US non-farm payroll numbers for June show unemployment at 4.1%, down from 4.2%, and these unemployment figures are hanging in quite well relative to Canadian weakness, which is puzzling given the economic concerns about the US.
“We just saw non-farm numbers for the month of June. The unemployment rate was 4.1% down from 4.2%. And I have to admit, these unemployment numbers are hanging in quite well in the US. How do you explain that? And why aren't we seeing the weakness in the US that that we're seeing in Canada, for example?”
JP Morgan stock has experienced a massive move off its lows, trading at 2.5x book value significantly higher than other bank companies, and banks are good barometers of economic health because they lend to corporations and individuals.
“JP Morgan. This is one of the first companies they're reporting here in the uh coming days, but this thing's had a massive move off its lows. It's trading at 2.5 times book, significantly higher than any other bank company, but nonetheless, the banks are a good barometer of what's happening in the economy because they're lending out money to corporations. They're lending out money to individuals”
JP Morgan stock has had a massive move off its lows and is trading at 2.5x book value, significantly higher than other bank companies, suggesting banks are doing well and lending money to corporations and individuals.
“I'm going to throw JP Morgan. This is one of the first companies they're reporting here in the uh coming days, but this thing's had a massive move off its lows. It's trading at 2.5 times book, significantly higher than any other bank company, but nonetheless, the banks are a good barometer of what's happening in the economy because they're lending out money to corporations. They're lending out money to individuals, and yet they're doing so well.”
Wealthy people can legally avoid tariffs on luxury items like private planes, cognac, and expensive wines by purchasing them through corporations located in tax havens like the Cayman Islands or Bermuda, or by smuggling them through customs without inspection.
“What shows up is the ownership of a private plane, the ownership of a yacht, and so forth. That shows up. But these items are frequently bought in the name of a corporation located in a tax-free haven in the Cayman Islands or in Bermuda or wherever. And so the rich people are hit the least by the tariffs. In fact, if you have a private plane, you can smuggle in your cognac and your red wines and whisies, the expensive stuff. Uh, nobody checks really at the custom.”
If US Treasury leadership were truly intelligent, they would have used US resources to accumulate all available global platinum supplies and potentially all silver supplies, as platinum is trading at 122-year lows against gold and could easily command a premium to gold if large institutional accumulation occurred.
“if these people were so smart why didn't they issue paper money dollars to the world and accumulate precious metals themselves. They could have bought they could buy today all the supply of platinum in the world and the platinum price now was at 122 years low against gold recently. The platinum price in my view could easily go and sell at the premium to gold.”
Faber's cash flow position improved significantly with higher interest rates—from earning zero on deposits at near-zero rates to earning 4-5% on all money held in deposits and brokerage accounts—while simultaneously the majority of people in his city are struggling.
“when interest rates were zero on the deposit position we didn't get any income. But now I'm getting on all the money that we have on deposits and so forth and with brokerage accounts and investment banks, I'm getting four to 5% interest. So actually my cash flow has never been better than now. I hate to say it because I'm living in a city where most people the majority of people is struggling and I can tell you it's depressing”
Housing prices have been coming down in most cities, especially condo prices in Vancouver, Toronto, and Montreal, but the affordability issue remains primarily a problem for lower income, middle class, and upper middle class households, not for the super rich.
“the prices are still close to record highs. have been coming down in most cities uh somewhat especially condo prices also in Vancouver and in Toronto and in Montreal. But in general I would say uh the affordability issue is a problem for the lower income recipients and the middle class and the upper middle class. the super rich.”
Justin Trudeau had zero qualifications to become leader of Canada, was a teacher with no business or economic knowledge, yet became leader of a $2 trillion economy.
“you talk about Justin Trudeau, like he had zero qualifications to become the leader of a country or the leader of anything. Uh the guy was a teacher. With all due respect to teachers out there, what they do is very important. But this guy could not knew nothing about business. He knew nothing about the economy. How the hell did he ever become the leader of a $2.5 trillion economy?”
The current US Treasury Secretary (and previous ones like Janet Yellen) are not actually as smart as claimed, and if they were truly intelligent, they would have accumulated precious metals for their government rather than allowing currency debasement.
“We have a Treasury Secretary and everybody says he's so smart. Yes, maybe he was smart, but maybe he wasn't. That the fact that someone is in a hedge fund doesn't make him necessarily smart, especially if the hedge fund is run by George Soros. Now the thing is this if the treasury secretary in the US had or the previous one the previous one was the hopeless yellen was a complete hopeless character...if these people were so smart why didn't they issue paper money dollars to the world and accumulate precious metals themselves.”
Jeff Bezos has done a great job socially by enabling people worldwide to buy products at reasonable prices through Amazon's reliable service, demonstrating that entrepreneurs create value contrary to socialist criticism of 'robber barons.'
“I mean, I'm happy that he has the money... Bezos has done a if you have to judge socially Bezos what has he done? He's done a great job enabling people who live anywhere in the world to buy his products and at a reasonable price. I'm sure there are, you know, websites that can sell things maybe a bit cheaper than Amazon, but Amazon is reliable.”
Faber is more negative about the US dollar than almost any other observer, viewing it as in a structural long-term downtrend with recent strength representing only counter-trend rallies within the broader decline.
“Well, I I think you're asking the wrong people because it would be difficult to find someone who is more negative about the US dollar than myself. Uh, of course in the last few years the dollar was strong but in a broad in a structural downtrend of a currency you have counter trend moves”
Individuals should own precious metals as portfolio insurance and a reserve currency holding, but should not store them in the United States due to government seizure risks or regulatory changes.
“I believe I mean we have to define what is the economy... I think individuals should still own precious metals. not 100% the other things that will do better than precious metals but uh I think as a reserve currency if you have a portfolio of different assets I would own some precious metals and not store them in the United States not in the US elsewhere”
Economists and academics hate successful entrepreneurs like Jeff Bezos and Elon Musk because academics themselves have unremarkable salaries and resent successful people, particularly those who have created significant economic value.
“the media principally and some government officials and the academics the academics of course they hate people like Bezos because he's successful. The academics are sitting in universities. Most of them have a salary but nothing special. They hate successful people. They hate Elon Musk.”
Russia and South Africa should 'squeeze' the platinum market by restricting supply, as the platinum market is tiny compared to gold and silver markets, making a cartel-style supply restriction feasible and profitable.
“I think the best advice I can give to Russia and to South Africa is to squeeze the platinum market. I mean the platinum market is very small. Where's the silver market? When the Hunt brothers in 1979, 1980 squeezed the silver mark, it was a big market, but the platinum market compared to gold and silver is tiny.”
The direction of US dollar purchasing power must decline, as it has over the last 100 years, and this decline will accelerate under Trump because he has demonstrated no regard for government debt repayment and repeatedly avoided repaying business debts throughout his career.
“I think the direction of the purchasing power of the dollar has to be like in the last 100 years down and under Trump this decline in the purchasing power will in my opinion increase not diminish because Mr. Trump has no regard for debts and he has no regard for paying debts.”
The US dollar has had its worst six-month performance in over 50 years, declining approximately 10% year-to-date while the S&P 500 is up only 5%, meaning US equity gains are being offset by currency depreciation for investors holding dollar-denominated assets.
“the US dollar has been under pressure. In fact, it's had it had its worst 6 months to the year since uh I think over 50 years... the S&P's up 5% on the year, but the US dollar is down 10% on the year.”
Many companies including Walmart, McDonald's, and Starbucks issued profit warnings in Q1, reporting that people aren't coming into their stores and aren't spending as much money due to uncertainty.
“We saw many companies, including Walmart, McDonald's, the Starbucks. So many companies came out with profit warnings saying people just aren't coming into their stores. They're just not spending as much money, and they're not because of all this uncertainty.”
The S&P 500 topped at 6,100 in February 2024, fell to 4,800 in April, and recovered to 6,200 in July, representing extreme volatility and creating uncertainty for investors.
“We saw the S&P top out in February at 6100. Went down to 4,800 in April and here we are now. in uh July and it's right back at uh 616200 trading at or near all-time highs.”
The US dollar has had its worst 6 months in over 50 years, falling 10% while the S&P 500 is up only 5%, meaning investors holding US stocks in foreign currencies are experiencing negative returns despite stock market gains.
“the US dollar has been under pressure. In fact, it's had it had its worst 6 months to the year since uh I think over 50 years...the S&P's up 5% on the year, but the US dollar is down 10% on the year.”
As an investment advisor dealing with wealthy clients, Mark observes plenty of liquidity with no tightness whatsoever, demonstrating that monetary conditions remain accommodative for those with access to capital markets.
“I am in an investment advisor. I deal with rich people and so forth. I can see plenty of liquidity. There's no tightness of liquidity. None whatsoever.”
As an investment advisor dealing with wealthy clients, Mark Faber observes plenty of liquidity in the system with no tightness, contradicting the narrative that higher rates have created monetary tightness.
“Now there may be tightness of liquidity for the small businessman. I can see I am in an investment advisor. I deal with rich people and so forth. I can see plenty of liquidity. There's no tightness of liquidity. None whatsoever.”
Faber missed significant market gains (S&P up 20-25% from April lows, Nvidia up 80% from lows) because he raised cash in April and got 'sucked into' the market decline, illustrating the difficulty of timing market moves.
“As an investor, it's been frustrating as hell because I kind of got sucked into that move we saw back in April. I raised a lot of cash. I'm still sitting on on gold, which is good, but I missed out on this move. The S&P just ripped 20 or 25% off its lows. Many stocks had massive moves off their lows. Nvidia, it's up 80% from its lows”
Donald Trump is a gift to gold holders and beneficial for precious metal investors because his policies of deficit spending and monetary expansion will accelerate dollar decline and increase inflation, benefiting real asset holders.
“my argument is, dear God in heaven, please keep Donald Trump alive for as long as is possible because he's a present from you for us gold holders. He's a gift to the world for people that own gold.”
Musk's formation of a new political party (American Party) will be very distracting and could result in Tesla losing significant market value, as evidenced by Tesla losing $50 billion in market value during recent market volatility.
“It's going to be very distracting. I mean, look at Tesla. Tesla's losing $50 billion a day in market value.”
Donald Trump is economically ignorant and represents the most incompetent presidential interventionist in US government history, though Faber would still vote for him as a better alternative to other available options.
“Trump in his economic ignorance, I want to state this, the president of the US is the most ignorant but greatest interventionist that we ever had in government. He is naive and incompetent. But I would have voted for him because he's a much better alternative.”
Trump is the most ignorant but greatest interventionist president the US has ever had, is naive and incompetent, but is a much better alternative than other available options.
“Trump in his economic ignorance, I want to state this, the president of the US is the most ignorant but greatest interventionist that we ever had in government. He is naive and incompetent. But I would have voted for him because he's a much better alternative.”
Young people in Toronto are unable to find summer jobs due to uncertainty, illustrating youth employment weakness.
“I have three young kids uh two of which are in university and they're going through this right now. Thankfully they both have internships but many other friends do not have summer jobs this year. Okay. And a lot of that has to do with the uncertainty.”
Both major US political parties are not particularly competent, creating conditions where a small third party could achieve decisive influence.
“each side is not particularly competent as we have seen now”
Walter the philosopher and critic said 'it is very dangerous to be right when the government is wrong,' which is relevant advice for Musk regarding his political activities.
“Walter the philosopher and critic said it's very dangerous to be right when the government is wrong. That is my advice to him.”
The US Treasury Secretary is described as 'smart' by public opinion, but Faber questions whether smartness and hedge fund management experience actually translate to sound monetary policy, suggesting previous Treasury Secretaries (including Janet Yellen and Ben Bernanke) failed to use their apparent intelligence to accumulate precious metals for the US.
“We have a Treasury Secretary and everybody says he's so smart. Yes, maybe he was smart, but maybe he wasn't. That the fact that someone is in a hedge fund doesn't make him necessarily smart, especially if the hedge fund is run by George Soros. Now the thing is this if the treasury secretary in the US had or the previous one the previous one was the hopeless yellen was a complete hopeless character”
If the economy is in such dire straits (as Faber claims), bank performance being so strong is difficult to explain, raising a question about the consistency of Faber's economic pessimism with observed bank financial strength.
“yet they're doing so well. How do you explain that if the economy is in such dire straits?”
Faber's website is gloomboomdoom.com where he publishes his research and analysis of economic conditions.
“You're an optimist. I'm not sure anyone would want to read what I'm writing, but I have a website gloomboomdoom.com”
Thailand has experienced slow economic growth in recent years and falls behind comparator countries like Singapore and Malaysia in economic performance and education, yet economists incorrectly label it a failed state when in reality many people choose to live and retire there.
“the economists and the academics they say that Thailand is a failed state because in the last few years the the country hasn't grown much and uh it hasn't done well economically compared compared to say cities like Singapore or Malaysia. But despite being a failed state, it's remarkable that so many people like to be in Thailand”
Trudeau had zero qualifications to become the leader of a country or any organization, as he was merely a teacher with no knowledge of business or economics, making his rise to lead a $2 trillion economy inexplicable.
“Justin Trudeau, like he had zero qualifications to become the leader of a country or the leader of anything. Uh the guy was a teacher. With all due respect to teachers out there, what they do is very important. But this guy could not knew nothing about business. He knew nothing about the economy. How the hell did he ever become the leader of a $2.5 trillion economy?”
Faber maintains his business as an international operation based in Thailand with an office in Hong Kong that manages his accounts, and finds Thailand to be an ideal location at his stage of life despite acknowledged economic and political challenges.
“I have my business not it's not a local business but an international business and I still have an office in Hong Kong that looks after my accounts and so forth. So for me it's an ideal place and it's ideal at my stage at the stage of my life.”
Justin Trudeau is the worst leader a country can have—a complete incompetent, ignorant, and bordering on madness—representing the typical quality of Western democratic leaders who are all characterized as 'cuckoo' or mad.
“I don't need any speeches about Canada. All I need is to see Trudeau, Justin Trudeau. That is enough. That is the worst leader a country can have. a complete incompetent uh ignorant and his bordering madness. That is the leader of the western world, the typical leader of the western world. They all cuckoo.”
The S&P 500 topped out at 6100 in February, declined to 4800 in April, and has recovered to trade near 6200 as of July, representing a 20-25% rally from lows with individual stocks like Nvidia up 80% from their lows.
“We saw the S&P top out in February at 6100. Went down to 4,800 in April and here we are now. in uh July and it's right back at uh 616200 trading at or near all-time highs... The S&P just ripped 20 or 25% off its lows. Many stocks had massive moves off their lows. Nvidia, it's up 80% from its lows”
Jeff Bezos spent $48 million on his wedding in Venice, illustrating the extreme wealth concentration and discretionary spending at the top of the income distribution.
“you look at Jeff Bezos who just dropped $48 million on his wedding in Venice.”
Faber personally would never buy a battery car because he prefers motorcycles, which use 'as much gasoline as a car or more,' and has not owned a car, indicating his skepticism about EV adoption.
“I personally I would never buy a battery car and many people are similar to me. I don't have a car. I ride motorcycles. my motorcycles, they use as much gasoline as a car or more.”
Trump has been in power for only 6 months, making it premature to assess the full economic impact of his policies, though he is making many changes and time will tell the outcome.
“The president has only been in power for 6 months, so a lot can happen. And he's making a lot of changes to the economy. So, I guess time will tell what's going to happen here.”
Faber is extremely negative about the US dollar's future prospects, more negative than most people would be.
“it would be difficult to find someone who is more negative about the US dollar than myself.”
Faber personally would never buy a battery car (electric vehicle) and many people are similar to him; he doesn't own a car and rides motorcycles.
“It manufactures a a product with batteries. Uh I personally I would never buy a battery car and many people are similar to me. I don't have a car. I ride motorcycles. my motorcycles, they use as much gasoline as a car or more.”
Trump has been in office for only 6 months, so significant economic changes are still possible and time will tell what the actual outcomes of his policies will be.
“The president has only been in power for 6 months, so a lot can happen. And he's making a lot of changes to the economy. So, I guess time will tell what's going to happen here.”