America Unable to Talk About Debt Without Losing It

You may soon (in a couple years, not decades) eat your words. Faber was one of the few mainstream advisors that appeared on financial television that actually predicted this crisis. He is way out of your league. Faber predicted everything from the subprime implosion to commodity prices falling off a cliff and he even predicted this rally we are having on March 6 (at the bottom). The same people that are advising you about the economy and the same exact ones who did not predict this crisis. Sure, there may be some trader (not investors) who are always making money, but they do not specialize in long-term trend forecasting.

It is already obvious that the standard of living needs to dramatically decreased, many localities are simply in denial. Obama can only bailout the states for so long, until the value of currency is reduced to the point where it is ineffectual. The living standard has been in a massive bubble since nixon defaulted on the gold standard. All of these government services that you have today and take for granted, ranging from welfare to educational grants to police enforcement and even underage drinking enforcement primarily more or less only exist in the US and a couple western allies of the US that also were living in a ponzi economy. Government services will be cut whether you like it or not.

You may soon (in a couple years, not decades) eat your words. Faber was one of the few mainstream advisors that appeared on financial television that actually predicted this crisis. He is way out of your league. Faber predicted everything from the subprime implosion to commodity prices falling off a cliff and he even predicted this rally we are having on March 6 (at the bottom). The same people that are advising you about the economy and the same exact ones who did not predict this crisis. Sure, there may be some trader (not investors) who are always making money, but they do not specialize in long-term trend forecasting.

It is already obvious that the standard of living needs to dramatically decreased, many localities are simply in denial. Obama can only bailout the states for so long, until the value of currency is reduced to the point where it is ineffectual. The living standard has been in a massive bubble since nixon defaulted on the gold standard. All of these government services that you have today and take for granted, ranging from welfare to educational grants to police enforcement and even underage drinking enforcement primarily more or less only exist in the US and a couple western allies of the US that also were living in a ponzi economy. Government services will be cut whether you like it or not.

[...] Let’s be clear, America has a debt problem. President Obama inherited a significant structural budget deficit (that is, a deficit that occurs even with the economy at full employment) from George W. Bush, which has grown substantially as the … Go to Source [...]

[...] Go to Source [...]

Okay moron. But what were you talking about before July 2007? Maybe how the housing bubble will inflate forever? That the Dow was a super buy at $13k?

Mr Avent -
with all due courtesy, I think you miss the point. Dr Faber completely understands the definition of hyperinflation – all too well. And he is not alone in his prediction of a very bad end to this crisis, one that very well may leave us pining for the 30s. I suggest you check out John Williams's excellent website, Shadowstats.com, for a sobering play-by-play of where we are in this crisis, and where we are heading. Or the writings of Professor Antal Fekete, a proponent of the Austrian School of Economics.

There is actually plenty of hair-raising, stomach-churning evidence that “current monetary and fiscal policies pose a serious threat to future economic health”. You might start by considering the mind-boggling reality of the 600 trillion USD notional value of derivatives hanging over the world like a gigantic guillotine. Or the state of virtual lawlessness that exists in our largely unregulated financial markets. Two excellent free sites to get a healthy dose of reality are 321gold.com and gata.org. The evidence is there – you just need to find the sources that are brave enough and independent enough to speak the truth.

Hyper-inflation is coming. Once inflation gets to 6% the genie is out of the bag and won't be stopped.

I am an American who lives overseas for many years. From an “outsider” perception the US economy looks like a horror story. A very medicore political elite that feeds the American people the implicit message that natural law does not effect them (i.e. supply and demand equations), statistical lies on real inflation today that effect the middle class (health care/education rates for example over the past 20 years), an entitlement program present value liability that is anywhere between 60 to 100 trillion Dollars. Faber understand the the fiat money system has de facto been taken over by the politicians. Of course there are self-corrrective mechanisms, but that requires an elite and a society (left or right) that returns to honesty and rationality. David M. Walker, former Comptroller General, has been banging the drum for years but no one wants to listen. I give President Obama great credit to say “we are out of money” -but interest rates will sky rocket to “keep the game going”.

Mr Avent -
with all due courtesy, I think you miss the point. Dr Faber completely understands the definition of hyperinflation – all too well. And he is not alone in his prediction of a very bad end to this crisis, one that very well may leave us pining for the 30s. I suggest you check out John Williams's excellent website, Shadowstats.com, for a sobering play-by-play of where we are in this crisis, and where we are heading. Or the writings of Professor Antal Fekete, a proponent of the Austrian School of Economics.

There is actually plenty of hair-raising, stomach-churning evidence that “current monetary and fiscal policies pose a serious threat to future economic health”. You might start by considering the mind-boggling reality of the 600 trillion USD notional value of derivatives hanging over the world like a gigantic guillotine. Or the state of virtual lawlessness that exists in our largely unregulated financial markets. Two excellent free sites to get a healthy dose of reality are 321gold.com and gata.org. The evidence is there – you just need to find the sources that are brave enough and independent enough to speak the truth.

Hyper-inflation is coming. Once inflation gets to 6% the genie is out of the bag and won't be stopped.

I am an American who lives overseas for many years. From an “outsider” perception the US economy looks like a horror story. A very medicore political elite that feeds the American people the implicit message that natural law does not effect them (i.e. supply and demand equations), statistical lies on real inflation today that effect the middle class (health care/education rates for example over the past 20 years), an entitlement program present value liability that is anywhere between 60 to 100 trillion Dollars. Faber understand the the fiat money system has de facto been taken over by the politicians. Of course there are self-corrrective mechanisms, but that requires an elite and a society (left or right) that returns to honesty and rationality. David M. Walker, former Comptroller General, has been banging the drum for years but no one wants to listen. I give President Obama great credit to say “we are out of money” -but interest rates will sky rocket to “keep the game going”.