Dr. Marc Faber spoke with CNBC this morning about currency markets, notably the recent movements in the euro, global long-term position in the dollar, and the rise of gold and silver.
Earlier, Faber spoke about his view of the U.S. deficit situation. He expects the U.S. government to raise the debt ceiling, but doesn’t seem Republicans and Democrats building a budget plan in which taxes are raised and spending cut, the real recipe for deficit reduction.
Faber also encouraged individuals, in a separate conversation, to be their own central bank and buy gold. He warns, however, not to hold it in the U.S., as the government might buy it like they did in the early 1900s.
- 2:30 We’re in a contest for the ugliest currency; I don’t think people are heavily position in euros. Most people still have 70-80% of their money in USD. Huge overhang of U.S. dollars globally. If people could sell their dollars and move into something they would believe in, they would. Gold and silver are the best currencies.
- 5:10 Right now, the U.S. dollar may rebound. The U.S. dollar will be in the future precisely its intrinsic value, namely zero.