Marc Faber: Not Even Gold Will Be Able To Save You From What Is Coming

Mar 27, 2013 -The Fed has been printing so much money it does not flow evenly through the sysyem.Bubbles are created and Marc is concerned about a systemic crisis approaching. March 28, 2013 – ECONOMY - Marc Faber, who authors the Gloom Boom & Doom newsletter, is usually pretty bearish on stocks and bullish on gold. Lately, though, gold doesn’t seem like it can catch a bid. “Despite the continued reverberations regarding the Cyprus bailout and its involvement of bank deposits, gold struggled to maintain the positive momentum created in the first two weeks of March and instead now looks very likely to move lower, towards $1580/oz,” wrote Deutsche Bank commodities analyst Xiao Fu in a note this morning. So, what does Faber have to say about it? This morning, on Bloomberg Surveillance with Tom Keene and Alix Steel, Dr. Doom was asked why gold wasn’t holding up. Here’s his explanation: When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn’t flow evenly into the system. Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession. More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S. So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide. Faber is, of course, still bearish on U.S. stocks. He told Bloomberg that he sees “considerable downside risk” in the market. –Business Insider

“Give me control of a nation's money and I care not who makes it's laws."

It's a disaster watching people scramble for reason, reach for a buoy or anything to keep them a float in this hurricane of treachery. A complete and utter con game to the point where informing the mass sheeple of its presence, the final check mate in a predemolitioned patsy infrastructure. And what will save you? Your food? Your shelter? Your money? Your reason? Your fears? Your knight in shining armor? Your ignorance? Your God? Yourself? Who?

This is scary. It's pretty sad when one's hard earned money is no longer safe in the bank. It's time to install a safe at home.


"The politicians of the western world are coming after your bank accounts. In fact, Cyprus-style bank account confiscation is actually in the new Canadian government budget. When I first heard about this I was quite skeptical, so I went and looked it up for myself. And guess what? It is right there in black and white on pages 144 and 145 of “Economic Action Plan which the Harper government has already submitted to the House of Commons. This new budget actually proposes “to implement a ‘bail-in’ regime for systemically important banks” in Canada. “Economic Action Plan was submitted on March 21st, which means that this “bail-in regime” was likely being planned long before the crisis in Cyprus ever erupted. So exactly what in the world is going on here? In addition, as you will see below, it is being reportedthat the European Parliament will soon be voting on a law which would require that large banks be “bailed in” when they fail. In other words, that new law would make Cyprus-style bank account confiscation the law of the land for the entire EU. I can’t even begin to describe how serious all of this is. From now on, when major banks fail they are going to bail them out by grabbing the money that is in your bank accounts. This is going to absolutely shatter faith in the banking system and it is actually going to make it far more likely that we will see major bank failures all over the western world.

What you are about to see absolutely amazed me when I first saw it. The Canadian government is actually proposing that what just happened in Cyprus should be used as a blueprint for future bank failures up in Canada.

The following comes from pages 144 and 145 of “Economic Action Plan which you can find right here. Apparently the goal is to find a way to rescue “systemically important banks” without the use of taxpayer funds…"

My parents would roll over in their graves on this.

The news coming out of Cyprus only gets worse. It was bad enough that the political class even promoted the idea of STEALING depositors’ savings. But now we’re finding out that they lied time and again about how much they’d take.

Initially the plan in Cyprus was the following:

Simply TAKING 6.75% of ALL savings accounts up to the official insurance limit of €100,000
A 9.9% levy (THEFT) on all deposits above the official insurance limit of €100,000.

The idea was put to a vote by the Cyprus Government, which rejected it. However, the facts remain that this idea WAS suggested. In fact, the original proposal from Germany and IMF was even more dramatic: Cyprus state broadcaster CyBC reported on Saturday that German Finance Minister actually entered the Eurogroup meeting on Friday proposing a 40 percent haircut on Cypriot bank accounts. Sarris stated on Saturday that this had also been the proposal of the International Monetary Fund. Sarris stated in Brussels that in view of the threat from the European Central Bank for banks in Cyprus to shut down and chaos to ensue, the increase in interest taxation and the haircut to bank accounts became necessary. “A disorderly default, that was a genuine possibility, has been averted,” he said.

http://ekathimerini.com/4dcgi/_w_articles_wsite2_1_16/03/2013_488169

Please reread that first paragraph: Germany and the IMF wanted to take 40% of all depositors’ accounts. Imagine nearly half of your savings being simply TAKEN one day to bail out a bank. That’s what Germany and the IMF proposed.

And we now find out that it could be far worse than even that:

Cyprus's finance minister said Tuesday that large deposit holders at Cyprus Popular Bank PCL (CPB.CP), the island's second biggest lender, could face losses of as much as 80% on their deposits as the government moves to wind down its operations. Speaking in a television interview with state broadcaster RIC, Michalis Sarris indicated that it could also take years before those depositors see any of their money returned. "Realistically, very little will be returned," Mr. Sarris said.

http://www.foxbusiness.com/news/2013/03/26/cyprus-finance-minister-uninsured-laiki-depositors-could-face-80-haircut/#ixzz2OqctR6pb

So… first it’s 10% on savings about €100,000… then we find out actually 40% was proposed… and NOW they reveal that realistically it could be as much as 80%.

As a quick aside, anyone who believes this could never happen in the US should consider that John Corzine stole over $1 billion worth of client funds during MF Global’s collapse in the US. Corzine is not in jail and in fact remains one of the most connected financial elites in the US. Indeed, NO ONE went to jail for MF Global’s theft.

There can be little doubt that European elites took note of the MF Global case and believed a similar idea could be foisted upon the European public during extreme times of Crisis. The only difference between MF Global and Cyprus is that in the former case the funds that were stolen were invested in commodity futures and other securities whereas in Cyprus they were savings.

Investors take note: a major development is at hand. As bankrupt nations and banks continue to spiral downward there will be more and more desperate attempts to plug the holes in their balance sheets by any means necessary. And it will be a LOT more than they claim,

The idea of confiscating savings is now on the table. And under an extreme enough crisis, this idea could indeed be implemented: the proposal will likely be “you, the people of this nation can choose…we can take 7% of your savings and your bank remains afloat or you lose everything.” Be prepared for this.

Hey Carol,

Do you think that this will affect credit unions too? I have just fired off a small note plus this information to Canada's party leaders although I suspect they already know what is coming down off the pipe...

Who Controls The Money? An Unelected, Unaccountable Central Bank Of The World Secretly Does

http://theeconomiccollapseblog.com/archives/who-controls-the-money-an-unelected-unaccountable-central-bank-of-the-world-secretly-does

What if NOBODY knows what to do(?) -- the good-guys -- the bad-guys -- the ETs -- the Gods -- the Archangels -- et al???!!! Who will accept responsibility??? That's a good one!! Huh??!! What if a Changing of the Guard will be timed to coincide with the Worst Crisis in World History??? What if the Current PTB are desperately looking for a Fall-Guy or Fall-Gal?? What if the PTB just wanna bail-out of this Flaming-Plane(t)?? Would YOU wish to take the reigns right now??? What if the PTB are more sick of the bullshit than we are??? What if there's no heaven or hell to go to when we die -- just reincarnation back into the madness?? Even if we created Heaven on Earth -- would anyone really appreciate it?? Would everyone try to rule paradise -- and turn it right back into purgatory and/or hell?? People don't want a police-state -- but what if we are fundamentally a bunch of outlaws?? As I keep saying -- I think I'm just going to keep doing what I'm doing -- no matter how bad (or good) things get. I think things have been kept from getting too bad -- with lots and lots of lies, smoke, and mirrors -- but now people are being faced with a brutal gang of facts -- with the advent of the internet. I tend to think that the PTB didn't really see this coming -- and now a lot of them are getting caught with their pants down. But I'm skeptical that a new-crew will be able to make everything better. Thinking about a United States of the Solar System scares the hell out of me 24/7. Even though it might be intended as a Road to Utopia -- I fear that it might still result in Hell on Earth -- due in no small part to infiltration and subversion by the same nefarious humans and other-than-humans who have been screwing things up for thousands of years. Some things never change -- which is why I've decided to keep modeling paradise -- while know full-well that purgatory is the preferred business and governance model of the really powerful PTB from who-knows-where?!