Marc Faber Sill Sees Global Recession in 2013, Says Stimulus Has
Impoverished the U.S.
by Constantine Gardner
Business Intelligence Middle East
Dr. Marc Faber
the Swiss fund manager and Gloom Boom & Doom editor is still
expecting a global recession in 2013 when the economies of the world
could take a hit from negative developments.
CNBC's Closing Bell
on Thursday, Faber still sees a 100% chance the world heads into
recession, echoing a call he made in May, as he simply can't see
where growth will come from.
look at the world, essentially Europe, the US, China and emerging
economies that depend heavily on China, Europe is already in recession,
the German economy is still growing slightly but likely to go into
recession, the other economies are already in recession. The US
has decelerated and I don't see much growth in the next 6-12 months,"
Faber was about
to elaborate on China's slowdown when he was interrupted by the
activity fell to a nine-month low in August as firms struggled with
global woes. Preliminary figures from HSBC's closely watched purchasing
managers' index (PMI), which gauges nationwide manufacturing activity,
hit 47.8 this month, the lowest since November. New export business
declined at its sharpest rate since March 2009, HSBC said, without
giving a figure
In May, Faber
warned that a global recession was on its way. "As an observer
of markets whenever everyone focuses on one thing like Greece and
Europe maybe they miss issues that are far more important such as
a meaningful slowdown in India and China," he cautioned.
are more and more stocks that are breaking down, economic sensitive
stocks and companies that cater to the high-end," he said,
adding "that suggests to me the economy is likely to weaken
and the huge asset run is likely to come to an end with significant
in concert, all the economies of the world could take a hit from
these negative developments, he reckons. I think we could
have a global recession either in Q4 or early 2013." When asked
what were the odds, Faber replied, "100%."
Is there anything
the Fed or the Treasury can do, i.e. more quantitative easing?
look at the injections of liquidity and the interventions by the
Fed and also by the Treasury with fiscal measures over the last
15 years, [the measures] have actually already impoverished the
U.S. economy," he said.
the rest of the article
Marc Faber [send him
mail] lives in Chiangmai, Thailand and is the author of Tomorrow's
2012 Business Intelligence Middle
Best of Marc Faber