Marc Faber: The Global Economy Is Entering An Epic Slump

Famed investor and author of the Gloom, Doom, Boom Report, Marc Faber, returns to the podcast this week to discuss the slowdown in the global economy, signs of which he claims are multiplying fast all around the world.

He predicts the next year is going to be an especially bruising one for investors, and recommends a combination of diversification and defense for those with financial capital to protect:

I do not believe that the global economy is healing. I believe that the global economy is heading into a slump once again.

We have a slowdown practically everywhere and if you take out the fudging of statistics, the economy for the median household everywhere in the world is not doing particularly well. If the global economy were doing so fantastically well, how would it be that commodities collapsed to the extent that they have declined? Or how would it be that the currencies of American markets and some of them have actually declined by more than 50 percent against the U.S. dollar in the last three years. How would this happen? So I do not believe that we have a healing of the global economy. On the contrary, I believe that the global economy is slowing down and that essentially equity markets are not particularly attractive.

Preceding every bubble, you have a huge expansion of credit. That was the case in the period ’97 to 2000, and in the period 2003 to 2007, and on previous occasions in economic history. In the case of China, credit as a percent of the economy has grown by more than 50% over the last five years, which is essentially a world record. And in my view, its economy is slowing down rapidly. I had a drink with a friend of mine the other day who has car dealerships, luxury car dealerships, in China. He said sales have hit a brick wall. Not 'slowed down'; a brick wall. And indeed, exports were down and car sales were down in July. I think that this will then spill over again into other emerging economies because China is a large buyer of commodities and a large trading partner to other countries.
I travel extensively. I can see roughly what is going on. So I really believe that the American market complex is not doing well at the present time. And everywhere, people basically are faced with rising costs of living and essentially declining currencies so that the persons in power goes down. So it's not a pretty picture. 

Click the play button below to listen to Chris' interview with Marc Faber (37m:21s)

This is a companion discussion topic for the original entry at

Sorry if I missed it, but is it possible to have the record-date included on these posts?  Might help with context.  I noticed it says this was presented on the 22nd but I'm assuming this was recorded before the market dips of Thursday and/or Friday.  Just a thought - it was a great interview regardless.  Thanks.

Good idea.

It was recorded on Tuesday 8/18 at 12 noon, well before the market dips.

I listened to the interview. Mark Faber is not effervescent But he is well Worth the effort.
(Effervescence is the mark of air heads. Cuteness in the service of Loki. He never misses a trick. )

Anyway, what I got from the interview was that wealth preservation is the hardest game in town. Even harder than Solitaire.

So I turn to Maslow and his needs. Shelter food and so forth.  My sauerkraut hasn't started to ferment yet.

a bit of whey from my cheese making gets the kraut off to a good start

Milk bacteria like milk. They are specialized to eat lactose. Vegetables do not contain lactose, therefore they are poor food for these bacteria IMHO.
Look into Sandor Katz’s book, Wild Fermentation. If you grow your own cabbage you can rely on the soil bacteria on it to ferment it to sauerkraut. 

Or… try doubling the sea salt.   

Here's a good guide to making Sauerkraut without any dairy:

To your health,


You should really take the ideas of Dr. Joseph Tainter for a spin. The guy has examined the broader implications of our concerns about our future well being, and distilled them down to where we find ourselves today. He basically confirms CM's efforts over the last decade. Who's aware and who's not.

Seems to me that when a diversion is needed - roll out a familiar story with with a tried and true audience.  For instance - a sex scandal, an animal story, another shooting, reproductive rights, bad behavior by (blank) you name it, and of course a celebrity divorce, disease or death.  So what would work to divert the masses really, really well?  Well how about something like Ebola.  Think about it, everyone would want to stay away from their neighbor, forget shopping, traveling, crowds (protesting) and so on.  The plan would be, hunker down and wait for the government to fix the problem, implement controls and put the best people on saving us all.  You'll can talk currency/financial collapse or reset but I don't think it will happen the way you think.  They will come at us sideways and few will expect the unexpected.  It's always the unexpected that hits us like a ton of bricks and the things we worry about rarely come to fruition exactly like we think they will.
Just my 2 cents.

AK GrannyWGrit