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Dr. Doom, Marc Faber: 'Even in gold, it will be difficult to hide.'

Via Business Insider:

This morning, on Bloomberg Surveillance with Tom Keene and Alix Steel, Dr. Doom was asked why gold wasn't holding up. Here's his explanation:

When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn't flow evenly into the system.

Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession. More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S.

So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide.

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My interpretation of what he said is different.

What I think he is saying is the BUBBLES in assets will be difficult to hide.

My interpretation is that they have been able to hide the bubbles and gold is the canary in the coal mine so it will be difficult to hide the global fiat bubble much longer (the currency war).

The assets shifted from one place to the next but when people go into gold, that is physical gold, it will have a blow off top that will expose the systemic flaws; the inflation (asset bubbles).

I guess the interpretation could also be that holding gold will not be a safe asset when there is a systemic crises but he didn't say gold will not be a safe asset and he is still bullish on gold and it being a wealth preserver.

Again just read it from my perspective and I'll give a synopsis of the last paragraph:

There are bubbles. The bubbles are shifting. They shift to hide/mask systemic crisis. The systemic crisis will be visible at some point (not be able to be hidden any longer). Gold suppression will no longer hide the systemic crisis (gold rising will expose that there are still systemic problems).

Of course in 2007-08 "recession" gold fell a significant amount in paper price along will all asset classes but it did recover more quickly than everything else (gold and other precious metals).

History does not long entrust the care of freedom to the weak or the timid.
Dwight D. Eisenhower

egapele's picture

Agreed, I took that to mean

that it will become difficult even to continue the apparent price manipulations that go on with gold / silver. Although I'm no expert, just going by what I have learned & read here at the DP.

Cyril's picture

BUMP for important explanation

BUMP for important explanation by Marc Faber.

We're warned.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

English isn't my 1st language & I have trouble with some phrases

English isn't my first language and I have trouble with some phrases or idioms sometimes.

I'm not sure how to interpret correctly that from Marc, and in the post's title precisely:

"Even in gold, it will be difficult to hide."

"In gold"? "To hide"?

To "hide"... to hide what, and from what?

Thanks in advance for your hints.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

He means it will not be easy to protect your savings or wealth,

even if you purchase gold. Gold will not be an assured safe haven from the various risks in the unstable financial system.

Ann in Florida

Cyril's picture

Yes, thanks. I got it that way, eventually. Others confirm, too.

Yes, thanks. I got it that way, eventually. Others confirm, too.

Thank you native English speakers. :)

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

(((((((Lysiandad))))))

English is my only language. If we were in an Engliah class, you would be way ahead of me in grades. I think you're English is far better then most Americans, and definately my own.

Bravo to your command of English!

Cyril's picture

Wait... After a second viewing and listening

Wait... After a second viewing and listening to Marc Faber, I'm afraid I understand now...

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

DJP333's picture

Systemic Crisis

This is a hard subject to approach with people. Economics and monetary policy dictate our entire lives, but people have a hard time grasping these subjects, and the doom and gloom of current developments put them on edge. I've noticed this when discussing current economic issues with family and friends, i.e. Cypress shenanigans, FED QE, fluctuations in gold and silver and inflation.

This week I am attending the annual AAHOA conference (in Houston this year) and Steve Forbes was one of the guest speakers today. His speech covered the FED's policies destroying growth in this Country. The instability of the European Central Banking policies and why the Cypress situation should concern us all. He discussed the gold standard and money needing a sustainable/fixed value, inflation as a tax, the abomination that is the federal income tax, the inefficiencies and cost of the IRS system, and business with unmanageable regulation. People were intrigued hearing this information.

I had a big phat smile on my face, and I listened, silently. I have been explaining these things to my family and business partners for quite some time (since Ron Paul 2008 and the flow of information here on DP). Today, they looked at me a bit differently. Keep educating folks. Things are going to get really interesting.

"It’s not pessimistic, brother, because this is the blues. We are blues people. The blues aren’t pessimistic. We’re prisoners of hope but we tell the truth and the truth is dark. That’s different."