Markets could rebound after Thursday's global market sell-off, but investors should see any bounce as a selling opportunity, as the world economy rolls towards total collapse, Mark Faber, editor and publisher of the Boom, Doom and Gloom Report, told CNBC Friday.The second from Victor Davis Hanson:
"The trouble is that governments can default in two ways. Either they just stop paying the interest and there is a debt restructuring, like Argentina went through; or they just pay the interest and the principle eventually, in a worthless currency. That's the way the U.S. will likely do it."
"By printing money, problems are not solved, but they can be postponed, and they become larger. It's like the recession in 2001. Had there not been massive money printing, it would have been steeper than what we had, but equally, we would have avoided probably the financial crash in 2008."
The next crisis will be far bigger, according to Faber.
"The next time we have a global economic crisis, it will be much worse than 2008. Before this happens there will be money printing and there will be war. The whole system will collapse," he said.
The so-called tough debt ceiling deal still ups the borrowing to $16 trillion, or over 100% of annual GDP. So why are we rejoicing about curbing, rather than stopping, the borrowing? We are not discussing paying back the massive sums that we owe. And we talk not of cutting the baseline expenditures, but only about the rate of increase in entitlements — reminding us that revolutions start not with the impoverished, but with threatened cuts of subsidies to the middle class. Its appetites increase faster than the state can satisfy them, as most judge their well-being not in having at last more than the poor but in always having less than the affluent.And, finally, the incomparable Bill Whittle:
There are people out there that would rather tear up $100,000 than bear to see everyone else get more.Truth.
Scary, isn't it?
Edited to add one more, from Weird and Pissed Off from the post Going Galt:
All you Leftists ask yourselves a question: What will you do when the folks who provide the things you need...all quit? How will you survive when you've strangled the last doctor, dentist and power company?
I know the answer, even if you've never considered the question. You don't care. You hate humanity, and you hate yourselves for being human. You'd rather die than see mankind prosper. That's why you embrace the suicidal insanity of Leftist policies. Your subconscious has followed them to their logical conclusion, and you know, deep down, that what I'm saying is true.