Comments on: MARC FABER: THIS IS “ZERO HOUR” FOR THE UNITED STATES http://pragcap.com/marc-faber-this-is-zero-hour-for-the-united-states Sun, 12 Feb 2012 13:32:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bill Peck http://pragcap.com/marc-faber-this-is-zero-hour-for-the-united-states/comment-page-1#comment-11999 Bill Peck Mon, 22 Feb 2010 15:57:30 +0000 http://pragcap.com/?p=16653#comment-11999 Mr. Faber is an absolutist in the sense that he looks at US debt in isolation and not relative to global dynamics. Take the eurozone. RELATIVE to the EU, the US future is quite bright. So what if nobody is triple A? What if we were triple B and the EU was triple B minus. The dollar would be supported relative to the euro in Forex. And China? Relative to Japan who built bridges to nowhere, the Chinese are building REAL INFRASTRUCTURE, so why wouldn't that have an imputed ROI relative to the Japanese? Mr. Faber is quite smart, but I think he needs to think about the fact that every economy is a prisoner of our planet, and relatively speaking, a less uglier scenario can actually appear positive, even though compared to prior epochs, it wouldn't. In that sense, I vote Mr. Faber's opinion as a data point that must be evaluated with the balance of perspective available, even though he may have predicted something in the past. Times change. Mr. Faber is an absolutist in the sense that he looks at US debt in isolation and not relative to global dynamics. Take the eurozone. RELATIVE to the EU, the US future is quite bright. So what if nobody is triple A? What if we were triple B and the EU was triple B minus. The dollar would be supported relative to the euro in Forex. And China? Relative to Japan who built bridges to nowhere, the Chinese are building REAL INFRASTRUCTURE, so why wouldn’t that have an imputed ROI relative to the Japanese? Mr. Faber is quite smart, but I think he needs to think about the fact that every economy is a prisoner of our planet, and relatively speaking, a less uglier scenario can actually appear positive, even though compared to prior epochs, it wouldn’t. In that sense, I vote Mr. Faber’s opinion as a data point that must be evaluated with the balance of perspective available, even though he may have predicted something in the past. Times change.

]]> By: Paul http://pragcap.com/marc-faber-this-is-zero-hour-for-the-united-states/comment-page-1#comment-11594 Paul Tue, 09 Feb 2010 02:47:54 +0000 http://pragcap.com/?p=16653#comment-11594 Well, the simple answer is that the US is not a company--and making the analogy won't turn the US to junk. I mean seriously, does all he do is give interviews. I've got my own bearish tendencies--and I agree that when Germany hit its crisis, there was hyperinflation followed by war (the tea partyers, though, are trying a rerun of that, but the second time it's farce, let us not forget!!). What I see him doing is running some familiar scripts over and over again to the point that I have to kind of be sceptical. Well, the simple answer is that the US is not a company–and making the analogy won’t turn the US to junk. I mean seriously, does all he do is give interviews. I’ve got my own bearish tendencies–and I agree that when Germany hit its crisis, there was hyperinflation followed by war (the tea partyers, though, are trying a rerun of that, but the second time it’s farce, let us not forget!!). What I see him doing is running some familiar scripts over and over again to the point that I have to kind of be sceptical.

]]> By: TPC http://pragcap.com/marc-faber-this-is-zero-hour-for-the-united-states/comment-page-1#comment-11589 TPC Tue, 09 Feb 2010 00:52:25 +0000 http://pragcap.com/?p=16653#comment-11589 It's not a terribly complex argument. I just think most people are having trouble wrapping their heads around the fact that this is a balance sheet recession. http://pragcap.com/why-deflation-remains-the-greater-risk It’s not a terribly complex argument. I just think most people are having trouble wrapping their heads around the fact that this is a balance sheet recession.

http://pragcap.com/why-deflation-remains-the-greater-risk

]]> By: Hedgie http://pragcap.com/marc-faber-this-is-zero-hour-for-the-united-states/comment-page-1#comment-11587 Hedgie Tue, 09 Feb 2010 00:50:14 +0000 http://pragcap.com/?p=16653#comment-11587 I agree that deflation continues to be the real threat. Japan has printed and spent quite a bit of money without escaping its deflationary black hole. I agree that deflation continues to be the real threat. Japan has printed and spent quite a bit of money without escaping its deflationary black hole.

]]> By: TPC http://pragcap.com/marc-faber-this-is-zero-hour-for-the-united-states/comment-page-1#comment-11586 TPC Tue, 09 Feb 2010 00:45:16 +0000 http://pragcap.com/?p=16653#comment-11586 You know my stance. I think all of these hyperinflationists are wrong. These guys all seem to understand the problem of debt, but can't seem to connect the dots between printing money and inflation. Inflation is very benign and deflation remains the bigger risk as of now. You know my stance. I think all of these hyperinflationists are wrong. These guys all seem to understand the problem of debt, but can’t seem to connect the dots between printing money and inflation. Inflation is very benign and deflation remains the bigger risk as of now.

]]> By: LZ http://pragcap.com/marc-faber-this-is-zero-hour-for-the-united-states/comment-page-1#comment-11580 LZ Mon, 08 Feb 2010 22:34:38 +0000 http://pragcap.com/?p=16653#comment-11580 Marc is brilliant, but seems he and other famous hyperinflationists always have an anti US bias. I am not saying he is wrong, but if they don't use double standard, they should look at a country no ther than China in search of hyperinflation caused by abused monetary policies. Marc is brilliant, but seems he and other famous hyperinflationists always have an anti US bias. I am not saying he is wrong, but if they don’t use double standard, they should look at a country no ther than China in search of hyperinflation caused by abused monetary policies.

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