Marc Faber: Inflation Destroys Societies

And it shouldn't be any different this time

This interview comes hot on the heels of the one I just released with demographer Neil Howe in which we discussed the current period of extreme volatility and change -- which he calls the 4th Turning -- that he sees the world descending into.

Long simmering issues are now at the point of boiling over, be it economic opportunity, crime, free speech, immigration, personal liberty -- the list is long.

When the status quo starts getting upended, what's likely to come next?

At times like this when the path forward is unclear and the stakes are high, it's wise to tap the counsel of those with a strong command of the lessons of history, and the practical experience of a lifetime in the market trenches.

There are few who fit that description better than Dr Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report

Marc explains how history is crystal clear that inflation created from money printing destroys societies — and we shouldn’t expect it to be any different this time.

To learn what he expects to come next, click here or on the video below:

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Adam’s Notes: Marc Faber (recorded 9.2.24)

EXECUTIVE SUMMARY

• Marc highlights the uneven nature of global economic recovery since the COVID-19 pandemic. He cautions against comparing current economic performance solely to 2020, noting that the world economy, particularly in Asia, is still weaker than in 2018 when adjusted for inflation. While there has been recovery from pandemic lows, much of the growth has been disappointing, and in real terms, many countries remain below pre-pandemic economic levels. He stresses that recovery rates depend heavily on regional and country-specific factors, such as inflation and local economic policies.

• Inflation has disproportionately harmed lower-income households in the US. Marc emphasizes that the rising cost of essentials like food has severely affected those who spend a large portion of their income on necessities. Retailers are reporting decreased consumer spending on non-essential goods, indicating that affordability has become a widespread issue. Marc also criticizes how monetary policies, such as low-interest rates and quantitative easing, have benefited the wealthy by inflating asset prices, while the general population faces declining purchasing power and an increasing cost of living.

• Marc argues that taxing the wealthy or redistributing wealth, as seen in historical examples like the Bolshevik Revolution, destroys incentives for productivity and innovation, leading to economic collapse. He emphasizes that