Photo: Bloomberg TV
Investor Marc Faber is still warning about the horrible future that awaits us.Specifically, he says that the world’s wealthy will soon see half their wealth destroyed.
Faber’s smart, of course, so he’s not laying bets on exactly how it will be destroyed. He’s also not picking a particular time frame:
“Somewhere down the line we will have a massive wealth destruction that usually happens either through very high inflation or through social unrest or through war or a credit market collapse,” he told CNBC (via the Wall Street Journal).
The remarkable thing here is that this actually isn’t a bold a prediction.
In fact, for monetary wealth NOT To be destroyed, we’d have to have a major shift in the world economy.
Inflation has been regularly destroying monetary wealth for the last century.
In fact, in the last hundred years, the value of each dollar has fallen to 3.8 cents.
That’s a lot more than 50% wealth-destruction.
And it’s why Warren Buffett observes that the investment most people think is the safest--cash–is one of the riskiest there is.
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