We love it whenever Marc “Gloom Boom Doom” Faber (not to be confused with Dr. Doom, Nouriel Roubini) comes on CNBC to offer up his apocalyptic views on the economy. Not only are his views always thought provoking (to say the least), but his accent and mannerism are right out of Dr. Strangelove. He’s chilling. A couple weeks ago, we caught him making some quasi-bullish comments on farmland, because (paraphrasing here) ‘when the next war comes, the bombs will falll on city dwellers‘. Who else goes on TV and talks like that? Nobody.
He was on again this morning, and his comments about a downward economic spiral almost seem reserved by his standards. Paul Kedrosky has a chunk of the transcripts:
ASIA IS THE PRODUCER FOR THE UNITED STATES, AND IT IS ALSO THE REGION THAT HAS VERY LARGE CAPITAL SPENDING. SO WHEN THERE IS A SLOWDOWN IN THE U.S., IT’S NOT GOOD FOR THE U.S., BUT IT’S BASICALLY A DISASTER FOR ASIA, AND THEN, BECAUSE OF REDUCED DEMAND IN ASIA, IT’S AN EVEN GREATER DISASTER FOR THE RESOURCE PRODUCERS OF THE WORLD: THE MIDDLE EAST, RUSSIA, BRAZIL. SO THE WHOLE WORLD GOES INTO A VICIOUS DOWNCYCLE ECONOMICALLY AND THE U.S. IS RELATIVELY BETTER OFF.
I DON”T BELIEVE THE CHINESE ECONOMY HAS BEEN GROWING AT 9%. I THINK IT’S BEEN DEACCELERATING VERY RAPIDY. BUT THE CHINESE, THEY LEARNED ONE THING FROM THE U.S. GOVERNMENT. IT’S HOW TO DOCTOR ECONOMICS
See, we do export some things.