Marc Faber Blog

Wednesday, October 22, 2014

Abenomics is a failure

My sense is that Abenomics is a complete disaster in the sense that the cost of living – because Japan imports a lot of goods and as the Yen weakens these costs have been going up far more than wages and so real incomes are down.

Tuesday, October 21, 2014

Commodities such as Oil have longer term price strength

The markets have become quite volatile, largely because of money printing. This concerns not just oil, but all commodities. The price of corn, wheat, soybeans are all down around 50 percent from the highs. They can be down for a while, but in my view, they will not stay down.

Monday, October 20, 2014

Deflation may be on the horizon

The bond market is manipulated by central bank buying of government debt. Yields are lower than they would otherwise be if the Fed and other central banks didn't buy them. 

Secondly, the decline in yields may be a sign that bonds buyers don't believe in the global recovery story when it comes to the economy. In fact, the low yields on bonds would suggest that we may be entering a period of deflation.

Wednesday, October 15, 2014

US compares favorably with France in terms of big government

The U.S. is not yet that bad [in terms of Government intervening in private sector]. But say from 1930 government spending as a percent of the economy has gone from 7.8 percent to now over 41 percent. 

It compares favorably with France which is now at 57 percent.

But the bigger the government is, the less dynamic the economy can be and the less gross there will be. But the governments don’t see that way.