Marc Faber sides with WCV against David Stockman

In Fire and Ice, we pondered the divergent investment strategies of two spectators, yours truly and former Reagan Budget Director David Stockman, who viewed the US fiscal meltdown similarly.

Happily (er, gloomily?), along comes famed investor Marc Faber to weigh in on the WCV side:
"Say war breaks out in the Middle East or anywhere else, Bernanke will just print even more money -- they have no option...they haven't got the money to finance a war," said Faber.

"You have to be in precious metals and equities... most wars and most social unrest haven't destroyed corporations - they usually survive," he said.
I'm not as certain about another imminent war as Faber, but even without another war, the U.S. is completely broke and dependent on the Fed to monetize a big chunk of its 8% - 10% GDP deficits.

You got a big pullback in gold and silver these past few days, and a modest pullback in equities. Buy the dips, baby. Bernanke's printing press doesn't have a "reverse" gear.

1 comment:

Doo Doo Econ said...

Cover the calls

Strange days indeed

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