Wednesday, February 10, 2010

A Peter Schiff Moment for Marc Faber

Remember the Peter Schiff YouTube with the clips of analyst after analyst and commentator after commentator pounding him when he was warning about the coming housing crisis?

Well, Hong Kong based analyst Marc Faber just got his Peter Schiff YouTube moment, courtesy of a CNBC anchor and analyst. Early in the clip below, Faber states that all governments will default, including the U.S. This wakes up CNBC anchor Sue Herrera. She immediately goes to the other guest to get an opposing view about the good old USA, just in case someone in America was watching CNBC with the sound on.

CNBC commentator Dennis Kneale then piled on as if Faber had just said on national television that he, Faber, was sleeping with Michelle Obama because Barack was too stressed back at the office.

Thanks to these protectors of the power elite fairy tale that the masses should just shut up, work hard, and buy bonds, we never got to hear Faber's complete view. At one point he says that he expects the U.S. to default, but at another point, in between CNBC elitists interruptions, he says the U.S. will monetize the debt, which would seem to suggest that there won't be any U.S. default. Does Faber, thus, mean that a collapse of the dollar will be default just presented differently? Or does he mean that the monetization will stop just short of hyper-inflation and then a traditional default will occur?

The lack of follow through here and the attack on Faber is the reason that the only way to watch CNBC is with the sound muted. The talking heads are nothing but voices from the propaganda machine.

NOTE: If you have trouble viewing the clip below, go here.

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  1. This may be a better link to the video.

  2. seems to be some http problem at bottom of post (Nial Ferguson at FT on Greek soverign debt crisis is good too.)

  3. Wenzel,

    I believe that when Faber says the US will default, he is referring to a definition of default which includes money printing to pay off the debt as a technical aspect of default.