Marc Faber Blog

Thursday, May 21, 2015

Britain a degenerated country now

You just had the news on Cameron. You look at Cameron. What interest is he to the people of the world? Britain is no longer an empire – it’s a degenerated country….Britain is a great country but economically it’s completely meaningless.

Wednesday, May 20, 2015

Good credit vs Bad Credit

The worst credit is what the U.S. has, which is consumer credit. People borrow to buy a car or a washing machine. That does not generate income and becomes burdensome to the household.


If you look at Korea and Japan in the 1950's to 1970's, credit was used for capital spending, infrastructure, plants, education, research and development. That credit generates cash flow, which can repay the debt.


Some people argue that China has overbuilt roads, tunnels, bridges and trains. But I don’t see it that way. In the U.S. during the 19th century, the country constructed lots of canals and railroads. All the canal companies, including the Erie Canal, went bankrupt. About 95% of the railroads had to be refinanced or went bankrupt. But the network facilitated the country’s trade and commerce significantly. So China is doing the right thing.

Monday, May 18, 2015

Greece issue a political one

If Greece leaves, the North Atlantic Treaty Organization [NATO] countries led by America are very afraid that Russia will establish closer relationships [in the Mediterranean]. This is a political issue overlooked by many people. 

Thursday, May 14, 2015

Why Indian stocks are correcting downwards now

I think there was a lot of hope with the election of Narendra Modi that we would essentially have wide ranging reforms. So the stock market rallied very strongly. Now, we have a kind of an awakening that reforms will take a lot of time and many will not be implemented. Some reforms will be accompanied by new regulations. So I think that investors are sobering up a little bit.