Gloom Boom & Doom Report publisher Marc Faber spoke to FOX Business Network (FBN) about the 2012 U.S. presidential election, fixing the economy, and investment opportunities in the global marketplace. Faber states that one of the main problems facing the U.S. economy is “too much government and that for political reasons it is very difficult to take entitlements away,” but that Rep. Paul Ryan is “on the right track.” With regards to investment opportunities abroad, Faber states that “this is the first time in my life I’m kind of interested in European shares.”
Watch the latest video atvideo.foxbusiness.comExcerpts are below:
On how to fix the “sluggish” economy in the United States:
“Yes, I think there are real structural problems, and one of the problems is too much government and that for political reasons it is very difficult to take entitlements away. I think Paul Ryan is on the right track. But as Peter Schiff just said, it doesn’t go far enough and fast enough. And I think that as a result of that basically the government consumes and it borrows money to do that and there is a huge difference between borrowing money and building a factory, buying machinery and employing people, and borrowing to pay out entitlements. That is the big difference economically. So I think the economy will stay very sluggish. Of course, if you throw a trillion dollars at the economy, for a while it improves. But in the next stage you have to throw in another trillion dollars just not to contract and to grow you have to throw in 1.4 trillion and so forth and so on. That’s the problem.”
On where Americans should look to invest:
“Well, you ask when interest rates are going to rise. I think that we have just seen the low in interest rates, and that from here onward, they will be irregular, but nevertheless an uptrend. The bond market has already broke down. The 30 year is down already almost 10% from its peak. And so I think that what Peter [Schiff] said is probably quite true. There will be a crisis at some stage. I don’t think right now. But I have to say one thing. The U.S. stock market has outperformed everything else in the last 18 months. It is up there right near its highs of April. And other markets in the world are near their lows. In other words. You look at France, Portugal, Spain, Italy, Greece. They are 2009low or lower…so for the first time in my life I’m kind of interested in European shares.”
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Watch the latest video atvideo.foxbusiness.comExcerpts are below:
On how to fix the “sluggish” economy in the United States:
“Yes, I think there are real structural problems, and one of the problems is too much government and that for political reasons it is very difficult to take entitlements away. I think Paul Ryan is on the right track. But as Peter Schiff just said, it doesn’t go far enough and fast enough. And I think that as a result of that basically the government consumes and it borrows money to do that and there is a huge difference between borrowing money and building a factory, buying machinery and employing people, and borrowing to pay out entitlements. That is the big difference economically. So I think the economy will stay very sluggish. Of course, if you throw a trillion dollars at the economy, for a while it improves. But in the next stage you have to throw in another trillion dollars just not to contract and to grow you have to throw in 1.4 trillion and so forth and so on. That’s the problem.”
On where Americans should look to invest:
“Well, you ask when interest rates are going to rise. I think that we have just seen the low in interest rates, and that from here onward, they will be irregular, but nevertheless an uptrend. The bond market has already broke down. The 30 year is down already almost 10% from its peak. And so I think that what Peter [Schiff] said is probably quite true. There will be a crisis at some stage. I don’t think right now. But I have to say one thing. The U.S. stock market has outperformed everything else in the last 18 months. It is up there right near its highs of April. And other markets in the world are near their lows. In other words. You look at France, Portugal, Spain, Italy, Greece. They are 2009low or lower…so for the first time in my life I’m kind of interested in European shares.”
**CREDIT FOX BUSINESS NETWORK**
