Saturday, September 29, 2012

Faber Warns “Everything Will Collapse”

By Money Morning Staff Reports

Famed economist Marc Faber appeared on Bloomberg TV with a harsh, direct warning to investors.

 "U.S. monetary policies will destroy the world," he said, referring to the new round of stimulus - QE3, or "QE Forever" - the Fed plans to launch this year.

As the publisher of the influential Gloom Boom & Doom report, Faber is well-known for making ominous predictions. Many regard him as the first to warn investors to get out of the stock market one week before the October 1987 crash.

And since the 2008 meltdown, he's been a fierce critic of the Fed's policy of money printing, arguing it only creates a phony recovery.

So it wasn't surprising to hear him speak out against Bernanke's most recent stimulus plan, quantitative easing or QE3.

What was surprising - and frightening - was the level of wealth-destruction he believes will occur.

According to Faber, "eventually we will have a systematic crisis and everything will collapse." (more)

“There Was No Increase In The Standard of Living Since 1997″ – Lacy Hunt

Do The Investment Banks Really Have a Lot of Metal?

Dear Friend of GATA and Gold (and Silver):
A fascinating little controversy has developed in our camp.
On Monday GATA’s great friend David Schectman of the Miles Franklin coin and bullion dealership in Minnesota related in his blog the account of a bullion trader friend, Trader David R, who says that major investment banks are making a risk-free trade out of gold by obtaining free money from the Federal Reserve, buying real metal, selling futures against the metal, and collecting the contango. That is, the big dealers would not be naked short, or at least not as naked short as long suspected.
Continue Reading at…

High-Frequency Trading are Driving Oil Prices Higher! CapitalAccount

Welcome to Capital Account. An EU parliament committee voted unanimously to back tighter restrictions on banks’ trading activities, including a proposed curb on high frequency trading. We talk to our guest David Greenberg, former NYMEX board member, about where the United States stands on high frequency trading.

Also, oil rebounded from the lowest close in almost two months, supposedly on speculation that China will take stimulus measures. We have gone from $50 a barrel in 2007 to above $90 in just a few years. We ask David Greenberg about what really changed that may have exacerbated this rise in the price of oil in the last 5 years.

Plus, US GDP revisions for the second quarter reduced growth down to 1.3 percent on an annualized basis. Times Square was a good indication of tough times after the 1929 stock crash, and since Lauren and Demetri are in New York today, we will have a chance to hear from them about what they call the “peep show indicator” in a special episode of “Loose Change.”

Quadrillion Dollar Derivatives Market 20 Times Global GDP

How Crony Capitalism Corrupts the Free Market | David Stockman

How to Start Lawyer-Proofing Your Life in 72 Hours / By Bob Bauman / September 26, 2012
If you’re waiting for a problem to start knocking – whether it’s an individual litigant or the U.S. government itself – it’s already too late. The best time for asset protection is long before a problem arrives.
Right now, like it or not, problems are heading straight up your driveway and your front door is within easy reach.
Through taxation and regulation, the U.S. government has stepped up attacks on our wealth. Eager to avoid dealing with our fundamental fiscal issues, our politicians will continue to dig deeper into our pockets to grab every penny they can, no matter who wins the upcoming election.
At the same time, a bad economy is making more people lawsuit-happy. Does your neighbor have a petty grievance against you and your barking dog? You’d better take that complaint seriously … anyone with money (even people of moderate wealth) can become a target.
As sovereign individuals, we understand these trends and guard against them. Wisely, we choose where we place our assets and identify places where we can find safety and privacy guaranteed by law.
For true security, we require a system that also guarantees maximum possible legal tax avoidance, the highest possible financial privacy, the strongest asset protection and access to the most profitable investments available worldwide.
Fortunately, there is one legal device that does all of this: the offshore Asset Protection Trust (APT).
The idea of setting up an offshore APT may seem daunting, but it doesn’t have to be a complicated process. In some of my favorite offshore havens, you can lay the groundwork for a solid asset-protection strategy in just three days.