Faber: No Safe Haven Left, Gov't Wasting Money

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Oct. 14 (Bloomberg) -- Swiss investor Marc Faber, publisher of the Gloom Boom & Doom Report, speaks to Bloomberg's Tom Keene and Sara Eisen about where to invest amid market uncertainty. (Source: Bloomberg)

Looking at the ballet and writing letters world ride -- worldwide.

Good morning.

What are you doing with gold?

What do you want to know about gold?

What are you doing with it?

We had a strong rally from the lows.

Now we are backing off.

I think we are around the 1200 getting into a binding range.

The sentiment about gold area naked of.

If you look at everything considered, the modernization of the debt.

The debt ceiling, which sooner or later will be increased because both republicans and democrats are big spenders.

Now we are at 16 trillion.

Both democrats and republicans have bitten -- have been big spenders because a lot of the money flows through the government.

Here we are three days into the october 17 deadline.

A lot of doomsday scenarios are playing out.

If they do not agree i the 17th, i think what can happen is the fed will finance it independently.

The interest payments are being met.

If the interest payments are not met, i think it will cause a disruption in the financial markets.

I am concerned about that.

I think this is like the euro issue a year ago when pete will were very negative.

In the end, it is a political decision.

Both parties want to spend but on different items they want to spend money.

And you look at what is going on and look at the events of the united states, the you have them as a separate and discrete event or compare them to other idiocies by governments in previous decades?

Idiocies like government is exactly the word.

A sickly a dysfunctional government that we have that has become far too large and is essentially wasting money.

Republicans are wasting more on the military complex entitlement programs and so forth.

It is a huge waste.

The problem is i do not see a solution.

I think the currency debate about the debt ceiling is more a symptom of a problem than the problem itself.

The problem is the government has grown disproportionately large -- regards economic growth.

Very quickly, where do you hide out?

There is no safe haven.

Monetary and treasury bills are not 100% safe a coast there is inflation in the system and hardly any interest and bonds are not very safe anymore, because eventually interest rates will go up.

Equities in the u.s. are relatively expensive by any valuation metrics you may use.

I do not see anything particularly safe.

The first one is to have diversified portfolio of different assets and they do not all collapse of the same time.


Always cheerful.

Thank you for joining us this morning.

The publisher of gloom, boom, and doom report.

Talking usual gloom there.

This text has been automatically generated. It may not be 100% accurate.


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