Marc Faber has recently done interviews with Fox Business' Maria Bartiromo and then with Bloomberg as well. In those interviews he discussed the fact that the global economy is slowing down and that the central banks are creating massive bubbles around the world where no investor can find a safe haven. In his Bloomberg interview he talked about global equities, global and domestic economy and gold prices.
Maria Bartiromo asked Faber about his thoughts on the global economy,
“Well I think it’s quite funny because everywhere you go, up to a little while ago, there was great optimism about this recovering global economy when in fact Europe is not recovering and in fact it is slowing down. In Asia and in other emerging economies we have a very meaningful slowdown in economic activity. I wouldn’t call all the emerging economies being in recession yet, but it’s just very little growth in present time in real terms and in some cases it has been a downturn, a meaningful downturn, like say in retail sales in Hong Kong or in Singapore…so I don’t believe that the global economy is healing, all that was in the context of massive interventions with fiscal and monetary measures by the authorizes.”
He went on to say what he thought about Europe and the slowdown in Asia and other emerging economies.
In his interview with Maria Bartiromo he said, "Europe is not recovering and in fact it is slowing down.” He went on to say, “In Asia and in other emerging economies we have a very meaningful slowdown in economic activity” and that “I don’t believe that the global economy is healing.”
Maria Bartiromo asked him about Japan, especially about Abenomics and he said that,
“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.”
She asked him what he would do to get the global economy back on track.
“Well basically it’s very simple as long as governments intervene into the private sector, the free market, and as you know, the U.S. is not yet that bad. 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.”
She also asked him what he thought about the protest in Hong Kong.
“Well basically we have these student demonstrations. In my view it is less about democracy and more about the chief executive of Hong Kong being very unpopular with young people and also with other people in Hong Kong. And it is also a social background in the sense that Hong Kong became very prosperous between 1950 and about 10 years ago. Years in which GDP per capita increased enormously and over the last 10-15 years real in other words inflation adjusted per capita incomes have been declining…I believe the outcome will be some sort of compromise where by the chief executive would probably resign.”
Fox Business Interivew With Maria Bartiromo
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Watch the latest video at video.foxbusiness.com
unable to embed the video Marc Faber interview with Fox Business.
http://video.foxbusiness.com/v/3830209824001/faber-the-global-economy-is-not-healing/#sp=show-clips
Bloomberg Interview
