Marc Faber Fears "The End Of The Capitalist Economic System As We Know It"

Zero Hedge ^ | 17 November, 2013 | Tyler Durden

[Errant]

"We already live in a financial economy in which the debt and capital markets exceed the value of the real economy by far," Marc Faber explains to Germany's Finanzen100, "and that's before the current formation of bubbles." His most ominous warning, and one that fits perfectly with the seeming insanity of Federal Reserve (and all developed market central banks) is that "the next time a bubble bursts, then the capitalist economic system as we know will falter."

[Cringing Negativism Network]

You do not mention China.

China is the part of this, which really matters.

China is poised to assume true global dominance if America curls up and fails.

We need to make the transition in a planned way, maximizing our profits.

I say it is time for conservatives to start waking up to the fact that the world has changed.

America needs to make things once again, and needs to adjust our economic rules now, to do so.

We should not wait for a global catastrophe. We need to start making changes right now.

Bring back American industry.

To America.

[Errant]

I hear you friend. I want the same, but realistically, manufacturing coming back to America ain’t going to happen for a myriad of reasons (regulations, tort law, taxes, training, time running out, ...). Not until a reset occurs that will eliminate most of the above.

[Susquehanna Patriot]

“...relatively few Americans will be affected by Obamacare since the vast majority receive their healthcare plans through their employers”

Don’t know financial Bob Brinker, ...Glad people let him have it. My employer group insurance is changing for 2014 and it is way more expensive. It appears to meet the Obozo guidelines already as it is no longer a Cadillac plan. Did anyone mention IBM releasing its retirees from its group medical insurance to begin in 2014?.

Some companies quietly welcome Obozocare to continue to get away from offering employee benefits - shift their costs to the government, fatten the company bottom line and not have to pay larger salaries. Defined benefit retirement benefit programs are dwindling for years (per GW and a Republican Congress). Do not depend on crony capitalists to be defenders of our Constitutional rights.

[Susquehanna Patriot]

Actually, there has been an increase in US manufacturing in the past several years, mostly in the “red states” (Midwest) where regulation / law is business friendly. The leftist states are suffering.

[Errant]

Actually, there has been an increase in US manufacturing in the past several years.

Thanks for the correction. I'm glad to hear that, but it's nowhere near what it was in the first three fourths of the last century, when we made everything we needed.

[yefragetuwrabrumuy]

He’s making a common error in assuming that capitalism is based on top-down function.

He correctly states that “the debt and capital markets exceed the value of the real economy by far.” But the gigantic debt and capital markets have only been around since WWII, when we adopted the *currently failing* debt based economic model.

When it collapses, it doesn’t mean that “capitalism” collapses, just that as a society we have to go back to the form of capitalism that worked for 500 or more years before the recent experiment.

I actually won’t be sad to see it go, because it was based on a false premise, that debt could be accumulated forever, so that by going into debt, you could get things you can’t actually afford. And that’s bad business.

It’s also easy to understand. If you only have $500, but you want something that costs more than $500, if you don’t have credit, then tough. You can’t have it. Simple.

In truth, with something like $200 trillion in debt that these high stakes gamblers have created for themselves, let THEM go into bankruptcy. The rest of us don’t owe them bupkus, certainly not the full faith and credit of the US.

[Errant]

The rest of us don’t owe them bupkus, certainly not the full faith and credit of the US.

I kind of feel the same way, especially when the Constitution specifically says any debt incurred in rebellion to the Constitution shall not be paid. If this current government isn't standing in opposition to the Constitution, then I don't know what you'd call it.

[Georgia Girl 2]

Buy hard assets and lots of them.