Marc Faber Says Americans Need To Tighten Their Belts, Save More
and Work More for Lower Salaries
Business Intelligence Middle East
the Swiss fund manager and Gloom Boom & Doom editor spoke
Tuesday about the Occupy Wall Street protests, blaming lobbyist
and Washington for the current economic stagnation and characterizing
Wall Street as a "minority" that is only "using the
protesters should instead go after the real culprits in Washington
and "also occupy the Federal Reserve on the way."
an interview with CNBC
from Montreal, Faber blamed "Keynesians and US Democrats for
their interventionist policies.
has been too much intervention in the Western World where the share
of the total economy that goes to the government and is government
sponsored has grown," he said.
essentially makes it very difficult for the Western World to grow
substantially...I don't see how the Western World, including the
US, Japan, and Western Europe can actually grow. They're going to
stagnate," Faber predicted.
in turn, leads "people to ask questions and to go after minorities,"
Street is a minority, anyone else would have done the same, they
use the system but they didn't create the system. The system was
created by the lobbyists and by Washington. So they [the protesters]
should actually go to Washington and also occupy the Federal Reserve
on the way," Faber suggested.
say the Wall Street bank bailouts in 2008 left banks enjoying huge
profits while average Americans suffered under high unemployment
and job insecurity with little help from Washington. They contend
that the richest 1% of Americans have amassed vast fortunes while
being taxed at a lower rate than most people.
an excessive regulatory environment in the US for curtailing initiatives
by businesses, leading to a drop in net investments.
no longer employ and invest capital in the US, he said, preferring
instead to invest in china or somewhere else in the world where
the regulatory environment is more favorable.
look at net investments in the US, it has gone down for the last
20 years, and it's now negative. In other words, basically the capital
stock of America is not being replenished...althought it's being
replenished somewhere else in the world. At the same time, the policies
of the Keynesians have always encouraged spending," the renowned
not going to get out of a recession by saying spend, spend, spend.
That is wrong!"
of saving is the problem of the United States."
In one of his
most memorable recent rants, Faber then went to explain what the
US [really] needs to do: "I tell you what the US needs. The
US needs Lee Kwan Yew [Singapore's first Prime Minister] who stands
in front of the US and tells them: Listen you lazy buggers, you
have to tighten your belts, you have to save more, work more for
lower salaries and only through that will we get out of the current
dilemma, that essentially prevents the economy from growing."
and the Dollar
predicted the stock market crash in 1987, turned bearish shortly
before the 2007-2009 bear market and called the March 2009 level
a major low which is not going to be broken any time soon, expects
market volatility to continue for a long period of time and sees
global liquidity tightening.
He is quite
positive about the Dollar because whenever global liquidity is tightening
"it's bad for asset prices but good for the US Dollar as was
the case in 2008."
of the masses
In an interview
with Tom Keene and Ken Prewitt on Bloomberg
Surveillance on Thursday, Faber was asked about one of the themes
in the current issue of the Gloom Boom & Doom Report
regarding alleged widespread corruption in many US institutions,
including the political and corporate systems.
with government is that the original intention of, especially a
democracy, is very good," he started by saying.
the rest of the article
Marc Faber [send him
mail] lives in Chiangmai, Thailand and is the author of Tomorrow's
2011 Business Intelligence Middle
Best of Marc Faber