Marc Faber: Forget US Stocks, Buy Gold Every Month ‘Forever’!

• Marc Faber gives very sound advice. The stock market is looking like it is forming a mountain top. The downside risk is significant ! Even if the EU bailout Greece, it simply means they will have to bailout the rest of the PIIGS. The debt to GDP is at a dangerous level such that these debts will never be repaid. The reality is: the world is heading towards a financial, economic and monetary collapse! CNBC reports:
    
  Investors should buy some gold every month “forever” or look to emerging market stocks rather than US shares, Marc Faber, editor of The Gloom, Boom & Doom Report, told CNBC.
    
  “(Gold’s) quantity cannot increase at the same rate as you can print money, which will eventually weaken the US dollar,” Faber said on Thursday in a live interview.  “I’m not saying that the dollar will go straight away down because other currencies like the euro are even worse at the present time,” he added. “But eventually if you print money, the purchasing power will lose [value].”
   
  Faber also said he believes Greece will be bailed out indirectly by the European Central Bank, but the plan won’t succeed. He sees other European countries following the same path.
    
  “Other counties like Spain and Portugal will also have to be bailed out eventually, and it will lead to more monetization in Europe, one of the reasons why the euro has been so weak,” he said.
   
  “The pain of the austerity will be very burdensome on Greece,” he added. “And eventually the economy can’t grow with the kind of budget they will have to enact and under these conditions, their currency is way overvalued.” Meanwhile, the US Federal Reserve will eventually have to bail out some states such as Illinois and California, he said.
   
  “If you compare the Depression years, we didn’t have credit cards and we didn’t have unfunded liabilities from Social Security, Medicare, and Medicaid,” he explained. “In other words, in 10 years time, between 30 to 50 percent of tax revenues will be spent on interest payments on the government debt…and that will lead to a weak dollar.”

Sovereign debt crisis! Massive defaults ahead! To head it off government will print money out of thin air (QE) massively!

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