Faber’s On-Air Rant: CNBC Loves Central Banks (Video)
Marc Faber appeared on CNBC’s Futures Now yesterday to encourage investors to get into gold. His reasons are the same as Peter Schiff’s – 2015 could be the year that the markets lose confidence in central banks’ ability to artificially prop up the economy. In fact, he strongly believes that gold could rise 30% this year.
At 1:58, the interview gets uncomfortable when Faber calls out the financial advisors and CNBC specifically. The anchor goes quiet and quickly ends the interview when Faber remarks bluntly that the financial sector would love it – Main Street be damned – if Yellen printed way more money:
It is clear to me that the financial sector – including CNBC – loves central banks, because by printing money, they lift stocks… I also get higher fees from rising stocks… Yellen should print twenty times more money… Then stocks will go up and it will impoverish the population.”
Highlights from Faber’s interview:
“The only stocks that I think have a great upside potential from here [is the] GDXJ, the junior gold mining index… Gold is up 14% since its October lows, and this year, 9%. I think gold has a lot of upside potential, because I think people will wake up finally… If they could short, sell short central banks, that is the trade of the century. The central banks will be exposed for what fraud they commit…
“Over the past 4 months the sentiment about gold was the most bearish that I have seen… All the central banks, all the financial advisors, and all the economists who never owned an ounce of gold saying that gold will go to $700. My view is that when the confidence in central banks finally collapses that gold has a potential 30% upside easily this year. By the way, about gold and about central banks – it is clear to me that the financial sector, including CNBC, love central banks. Because by printing money, they lift stocks. They lift asset prices. So the financial sector benefits. They get more fees. But the ordinary people, they don’t get higher wages. I also get higher fees from rising stocks. I love Bernanke. Yellen should print twenty times more money [and] expand the balance sheet of the Fed, not to $4.5 trillion, but to $450 trillion. Then stocks will go up and it will impoverish the population. Well done.”
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