Marc Faber on Bloomberg TV

I have a lot of time for Dr. Marc Faber. This morning is a telephone conversation regarding the status of markets and in particular his thoughts around Dubai. In his view the Dubai issue is not significant except as a reminder that the problems still exit. He notes that the globe is going through a financial crisis, and all the quantitative easing and liquidity injection has NOT solved the problem, massive (and interlocking) DEBT. It is also a reminder that state owned enterprises might not well be sovereign protected. But most profound in my view is that he continues to maintain that the DEBT issue must be resolved, a problem which to date has only been postponed. It is Dr. Faber's opinion that the next wave of uncertainty and failure in confidence will not only bankrupt the banking system, but will also BANKRUPT governments. The United States of America included. Reference is also made to Greece and the dissolution of the EU. The previous economic power of the Western World - US-westernEurope-Japan is shifting - the combined economic activity from the Emerging World where 80% of the world's population resides, is now larger than the Western world. Where are you putting your money?

Faber Sees `Extremely Limited' Upside for U.S. Bonds