Marc Faber Predicts Debt-Induced “Massive Wealth Destruction”
Marc Faber, legendary contrarian investor and editor of the Gloom, Boom & Doom report, predicted today that runaway government debt and money printing by central banks will ultimately lead to “massive wealth destruction” that will decimate investment portfolios. From CNBC.com:
“Somewhere down the line we will have a massive wealth destruction that usually happens either through very high inflation or through social unrest or through war or credit market collapse,” he said. “Maybe all of it will happen, but at different times.”
He also explained that central bank inflation will likely raise stock prices in the short term:
“I think that people should own some gold and I think that people should own some equities, because before the collapse will happen, with Mr. Bernanke at the Fed, they’re going to print money and print and print and print,” he said. “So what you can get is a bad economy with rising equity prices.”
All signs point toward another financial collapse and the eventual Great Default – that is to say, widespread government defaults on their debt. Exactly when it occurs remains to be seen.