Where do they find these morons?

Well, I decided to cruise over to CNBC to see the latest on the stock market (which is presently tanking), and I happen to come across one of those side-links titled, “Dr. Doom: Capitalism Could Fail Like Communism.”

OK, intrigued, I decided to read the report.

Here’s the link to the story on CNBC.com:

Dr. Doom: Capitalism Could Fail Like Communism

CNBC.com
15 May 2009

A sustainable recovery will occur only when the corporate system will be cleaned of losses and capitalism risks collapsing if this does not happen, Marc Faber, the author of “The Gloom, Boom & Doom Report,” told CNBC Friday.The central banks will continue to print money at full speed, but long-term this strategy will lead to a fall in purchasing power and living standards, especially in developed countries, Faber said.

The years 2006 and 2007 were “the peak of prosperity” and the world economy is not likely to return soon to that level, he added.

“I think the final low in markets will occur when the system is cleaned out,” Faber said.

Unless the system is cleaned out of losses, “the way communism collapsed, capitalism will collapse,” according to Faber. “The best way to deal with any economic problem is to let the market work it through.”

US Will Go Bust

The Federal Reserve’s policy of printing money is destabilizing the markets and creating “enormous volatility” said Faber, who in his latest “Gloom, Boom & Doom Report” wrote that it was money printing that had pushed stock prices up.

“The US government for sure will go bust. That I guarantee you. Not tomorrow, but it will go bust,” he added.

US government bond yields bottomed out in December 2008, he said.

“I think this is the beginning of a long-term bear market. And I think the government will have to keep interest rates artificially low because deficits will be too high,” Faber said.

As for the recent rally in the stock market, most investors missed it because they focused on the economy rather than look at the technicalities.

“People said fundamentals are bad and markets are going up for no reason. But money printing is a reason,” he said, explaining why quantitative easing will continue.

“The worse the statistics will be, the more money will be printed. Believe me, globally all the central banks will print money like there’s no tomorrow.”

Now, I highly recommend you take a quick look at the link to the video of the interview.  The guy who is making these claims is a European, and everyone in the discussion is from Europe.

As if a bunch of European socialists know anything about capitalism.  And here’s a prime example:

The central banks will continue to print money at full speed, but long-term this strategy will lead to a fall in purchasing power and living standards, especially in developed countries, Faber said.

“The worse the statistics will be, the more money will be printed. Believe me, globally all the central banks will print money like there’s no tomorrow.”

Ummm…a capitalist system does not rely on central banks.  They rely on private banks.  The whole point of central banks is so that a socialist government can usurp private wealth, and control the masses.  So, when you have a system of central banks, you have a socialist system.

But there is more.

A sustainable recovery will occur only when the corporate system will be cleaned of losses and capitalism risks collapsing if this does not happen, Marc Faber, the author of “The Gloom, Boom & Doom Report,” told CNBC Friday.The central banks will continue to print money at full speed, but long-term this strategy will lead to a fall in purchasing power and living standards, especially in developed countries, Faber said.

Labeling the losses in the present system as “capitalism risks” is probably one of the most bogus assertions made.  Many of these private capitalist establishments were literally forced under threat to provide loans to people who could not repay them.  You had federal regulatory agencies involved in  making sure bad debt was taken in for political purposes.  NONE of this is capitalist.  It is Euro-socialism.

“The US government for sure will go bust. That I guarantee you. Not tomorrow, but it will go bust,” he added.

One of THE MAIN REASONS why the US government is in up to its neck in debt has absolutely NOTHING to do with capitalism.  Nada.  What is killing the US is the out -of-control spending on social programs, and internal government expenses.  Over two-thirds of the US budget is spent on things like Medicare, Medicaid, Social Security, and so on.  To somehow equate this to capitalism is to illustrate your utter ignorance of what’s actually going on in the world, or a willingness to lie through one’s teeth.  I’m betting, in this instance, it is a good measure of both.

What is running up governmental debt in the United States is the thought that we can somehow implement the failed policies the Euro-socialists have embraced, and get better results.  One only need look at Medicaid and Medicare, and the future insolvency of Social Security to see the utter futility of this kind of thinking

But what’s more important is that the pain going on in the US pales in comparison to the abject chaos that has been unleashed on the European markets.  They are, by and large, socialist.  They have fully embraced a redistributionist mentality top-to-bottom that people pay WELL over 50% of what they make to the government, and get substandard services in return.  It is little wonder that the modern-day European economies are little more than extended recessions punctuated by brief moments of economic activity.

Our “capitalism” is keeping us afloat better than the socialism Europe embraces.  Were these European nations forced to pay for their own protection, as opposed to running to the United States every time a threat appears, their economies would collapse in under a decade.  If it wasn’t for their investments in the “capitalist” United States, they would have withered like a Black-Eyed Susan in the Gobi Desert.  This is illustrated in the fact that when America shrugs, European nations fall off its shoulders, as we have going on now.

What’s most interesting is that while China is buying-up American debt, they are digging themselves a hole.  Their entire GDP is a fraction of that of the US.  They’re playing an economic shell-game that is going to come back to bite them one day.  You cannot manipulate your currency, and buy up more debt than you’re willing to write-off without their being consequences down the line.

But, buried like a diamond beneath a pile of dung, there is a small bit of truth in this stew pot of literary swill:

The years 2006 and 2007 were “the peak of prosperity” and the world economy is not likely to return soon to that level, he added.

He’s right.  The world economy is not likely to return to full strength any time soon.  But that’s only because socialism is so prevalent in the world economy.  And the US is unlikely to recover under the leadership of Dear Leader, His Highness Barack Hussein Obama. 

 

 

Seriously, where do they find these morons?

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