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Faber: 100% Sure US Will Have Zimbabwe-Style Hyperinflation

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May 27, 2009 – Comments (13) | RELATED TICKERS: FXI , EWJ

Many of my best ideas and beliefs are stolen from others

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September 18, 2007 – Comments (0) | ADD RELATED TICKERS

Marc Faber and Jim Rogers are two fund managers I follow.

NOTE: This was my post a year before I became Top Fool via abitrePERFECT and Top in points via abitare.  I follow Faber and Rogers, but I trust no one. That is why I survived the BRIC implosion. Rode the commodity bubble, avoided the commodity, real estate, finance and housing implosion etc....

Again, I listen to many, trust NONE. I steal good ideas where found.

The Business Insider has the Story:

Faber: 100% Sure US Will Have Zimbabwe-Style Hyperinflation

http://www.businessinsider.com/faber-100-sure-us-will-have-zimbabwe-style-hyperinflation-2009-5

More gloom from the always-cheerful Marc Faber.

Bloomberg: Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.

“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”

You can find the whole video interview here. Early on he's asked whether he ever talks to Nouriel Roubini, and what he makes of the other Dr. Doom's slightly more optimistic attitudes towards the economy. Faber says he reads Roubini but doesn't talk to him, before creepily adding with a huge grin that they go to different nightclubs.

Meanwhile, we'd like to thank a reader who sent us the following picture of himself holding $180,081,500,000,000 in Zimbabwe dollars. This could be you, folks!

Bloomberg has the complete interview 27 May 09.

http://www.bloomberg.com/tvradio/portfoliomatters.html

Here is an older interview:

 

13 Comments – Post Your Own

#1) On May 27, 2009 at 8:14 AM, XMFSinchiruna (26.99) wrote:

Sounds like the cat is out of the bag.

Thanks for posting! 

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#2) On May 27, 2009 at 9:04 AM, dudemonkey (37.60) wrote:

It's always good to get a dose of Marc Faber's brand of cheery optimism first thing in the morning.  At least my day won't get less depressing from here!  Hahah.

Seriously, I like this guy.  I like what he has to say and he clearly outlines a worst-case scenario.  

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#3) On May 27, 2009 at 9:07 AM, dudemonkey (37.60) wrote:

At least my day won't get less depressing from here! 

I was wrong.  I read an alstry post.

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#4) On May 27, 2009 at 9:58 AM, portefeuille (99.66) wrote:

bloomberg article:

U.S. Inflation to Approach Zimbabwe Level, Faber Says

 

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#5) On May 27, 2009 at 10:38 AM, gembree (99.89) wrote:

Hyperinflation is monthly inflation of 50%.  Surely Faber is not this dumb?

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#6) On May 27, 2009 at 12:17 PM, leohaas (31.98) wrote:

At least I would not need to worry about my mortgage anymore!

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#7) On May 27, 2009 at 12:21 PM, jstegma (29.39) wrote:

Inflation, sure.  But Zimbabwe levels?  Please.  I'll call BS on that.

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#8) On May 27, 2009 at 12:23 PM, leohaas (31.98) wrote:

At least I would not need to worry about my mortgage anymore...

And my investment in TIPS will go through the roof!

Disclosure: long TIP.

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#9) On May 27, 2009 at 12:33 PM, kaskoosek (54.13) wrote:

leohaas

 

I am not so sure. CPI numbers will have to be fudged.

 

 

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#10) On May 27, 2009 at 3:13 PM, JakilaTheHun (99.94) wrote:

Either Faber is a complete moron or he wants press. 

Inflation - yes

High inflation - good possibility

Hyperinflation - outside possibility

Zimbabwe-style Hyperinflation - 0% chance

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#11) On May 27, 2009 at 3:36 PM, jddubya (< 20) wrote:

dudemonkey

 

Alstry made you less depressed?

 

Ooops!!!!!!!!!!! FORGOT TO ADD SOME ALSTRY STYLE!!!!!!!!!!!!!!!!1

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#12) On May 27, 2009 at 3:46 PM, ttboydxb (28.84) wrote:

TIPS?  That's on the Governments view of infaltion which is very very different from Real inflation.  (On Peter Schiffs' blog from the 26th he compares TIPS to letting the wolf guard the henhouse, and supposedly even the FED is now buying TIPS?? Huh?  That must mean they're worried about inflation as well?)

 

If you do think inflation will be an issue, Hard assets, Gold and Silver...

 

My 0.02

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#13) On May 27, 2009 at 6:56 PM, XMFSinchiruna (26.99) wrote:

ttboydxb

Excellent point!

TIPS are woefully insufficient, and dollar exposure of that nature is simply unacceptable. Owning treasury debt is like being long the underlying currency. Whatever one's view on the degree of inflation looming, perhaps we can all agree that long dollar exposure could stand to be limited (to say the least) at this juncture.

Gold and silver are the best defense against dollar weakness, bar none.

You will go far, Fool! :)

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