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Marc Faber: Obama is a Disaster for Business and a Disaster for the US

By Joao Peixe | Thu, 08 November 2012 23:20 | 7

Yesterday it was Jim Rogers despairing over Obama’s re-election, today it’s Marc Faber, are there any financiers out there who are happy with the results of the election?

In an interview with Trish Regan and Adam Johnson on ‘Street Smart’, Marc discussed his reaction to Obama’s victory, and what impact he sees the result having on the US economy in the future.

It turns out that Marc’s beliefs are very similar to those of Jim’s; maybe they are onto something, and these are not just the ramblings of gloomers and doomers. He said that “Mr. Obama is a disaster for business and a disaster for the United States. Not that Mr. Romney would be much better, but the Republicans understand the problem of excessive debt better than Mr. Obama who basically doesn't care about piling up debt. You also have in the background Mr. Bernanke, who with artificially low interest rates enables the debt to essentially escalate endlessly.”

Related Article: What an Obama Victory Means for the Middle East

“It is a tragedy of life that both candidates did not lose the election. They would have deserved both to lose.”

The fiscal cliff is obviously the largest event on the calendar for investors, but Marc remains optimistic, in a way, suggesting that “they will solve it. They will increase cosmetically some taxes and they will cut cosmetically some spending and it will all be back loaded 10 years from now. So in reality, not much will happen.”

Investors tend to believe that Romney would have been better for the economy; expecting the markets to drop by at least 20%, according to Mr. Faber, as a result of the high level of manipulation that the Fed has been doing.

By. Joao Peixe of Oilprice.com

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  • Max Entropy on November 10 2012 said:
    JTD - it would be nice for you if you could indeed run a business like a government, because if you were, you could forgive your own debt. Which, in effect, is what the Fed is doing. The trick is to cook the frog slowly so he doesn't jump out of the pot. It's also wise to diversify your assets putting some into hard, shiny stuff that people crave, like gold. However gold is useless for providing capital to business, because there's only a finite amount of it, while there's an endlessly expanding need for capital, which, in the final analysis, as Adam Smith observed, is actually human effort and ingenuity. Anything that motivates people, acts as capital. Look at WWII and its effect on production; as the good Doctor Johnson noted - 'Nothing concentrates a man's mind so wonderfully as the thought of being hanged on the morrow.'
  • Sam DiCamillo on November 10 2012 said:
    This is gonna sound rediculous, but anyway:
    It's all about the mood and sanity of the country, and ninty percent of Psychiatric patients are :
    Democrats.
    So whenever the ´"Crazies" have the upper hand in gov, then things automatically get nutty, and the country starts to go insane as an entity.
    When the crazies, the Hollywood nutcases set the tone for all of society, then we are really heading for a downfall, and this time it is probably too late to turn things back.
  • Black Swan Squared on November 10 2012 said:
    Conquerors, then Capitalist, then...another aggregation scheme. Simply learn when to migrate all your eggs to another basket. Obama is not the "redistribution" goose, and Romney is not the "Bainionare" golden egg. But Wall Street is a most efficient gather-basket. Jimmy & Marc are not Gloomers & Doomers they are frightened Whinners! What they are on to is this capitalistic (Good Faith of the U.S. Government) experiment is over! Irrespective of who occupies 1600 Pennsylvania. Even the Occupy Wall Street neophytes knew that much.
  • Paul Adams on November 10 2012 said:
    JTD, your idea sounds good, but this is exactly what Gaddafi was trying to do: start a new gold backed currency for Africa and the reason they had to get rid of him.

    Let's wait and see what the next puppet show (I mean election) brings.
  • Eric on November 10 2012 said:
    If desert sand were money this government would still run out ! Between the IRS and Obama care its just better to close up shop and lay everyone off Its out of hand and sad thirty years for nothing !
  • J.R. on November 09 2012 said:
    What a stupid assertion to make. It makes no difference who is President anymore. Corporate America has long since taken over both political parties. The assumption that Romney would have been "better" is absolutely baseless and conveniently chooses to ignore Romney's track record.

    The fiscal cliff was handed to this Administration by the last Administration. And it will be handed to the next Administration. The point being, it's decades in the making, it's unsolvable by any "President" and it is the result of very poor governmental management and spending.

    That last fact will remain unchanged, under any Administration.
  • JTD on November 09 2012 said:
    I agree that the predicted financial crisis could be backloaded to some point in time and for that matter forever.

    Why would the banksters destroy the goose that lays the Golden Egg? These crooks extract from the people's treasury 600 billion dollars every quarter! And 600B is only to pay the interest!!! The government is now borrowing money to pay the interest on the interest!

    I owned and operated a construction company for 40 plus years. If I had run my business for a mere 30 days like the government runs its financial business I would have been insolvent and entangled in a Chapter 13 bankruptcy in a 90 days...

    Anybody that thinks they are going to cook that goose is absolutely looney tunes.

    What the oligarchy will do is slowly eliminate all freedoms thinking they will have complete autonomy and control of all of the money. Wait! They do have control of all the Fiat Paper!

    Think again banksters! What "They" fear is the reality of the herd consequently trampling their edifices of tyranny.

    Stamped anybody?!

    I believe a way out of this mess is to develop a private coinage system that is minted by private a nonprofit commission. Setting a platinum, gold, silver and copper standard.

    Citizens would bring their precious metals to the mint and for a small fee the mint would exchange their metals for minted coins of various weights divided into 1/10 ounce increments. The value of the coin would be based upon the current metal rates. To simplify matters private mints could issue currency coupons that are redeemable upon demand, however the mint can only create 10% of their precious metal reserve into paper currency. Currency by my definite is an instrument of exchange for known tangible value of a hard asset, in this case precious metal coins for currency coupons.

    This is not a new concept currency coupons were common prior to the formation of the illegal Federal Reserve. If you don't believe me. Google pre-federal reserve gold and silver bank notes. These currency coupons/notes were good anywhere! Why?

    Because the notes could be redeemed at any bank! The Bank of Chicago would gladly redeem the notes for metal coins and then send the various batches of currency notes to their respective banks of origination like, The Bank of Cincinnati, to redeem them for real money, namely precious metal coins.


    I would prohibit alway commodity trading (gambling) immediately. Wall Street is nothing less then a Whorehouse operating a Casino.

    Don't get me wrong I am a Capitalist Pig at heart, but not a Monopolist.

    Monopolies are treasonous in nature and we all know what happened to Benedict Arnold.

    Good day...

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