Saturday, 24 November 2012

FABER: 44 Charts That Show Why The World Is Doomed

In a new presentation given in Hong Kong to the London Bullion Market Association, Faber offers a thick stack of 44 charts that makes him very bearish on the global economy (via ZeroHedge). They include overviews of the emerging and evolving trends on debt, trade, stocks and commodities.

Faber points to the explosion of public and private debt and how they have been far outpacing GDP growth for the last 50 years. In this backdrop, the wealth gap between younger and older Americans have been widening.

Overseas, China has seen its economy boom on expansionary monetary policy, which has turned the world's second largest economy into a giant credit bubble.

Considering all this, he offers two investment strategies: "aggressively shifting from one asset class to another" or "achieving safety though diversification."

Here is the (very interesting) presentation.


  1. This one mainly got my attention:

    Seems things in Singapore are not that bad after all. I just cannot possibly see how house prices in Greater China (including HK) can remain at this level without inflation, as I cannot imagine real income going up that much.

  2. I find property in Singapore already expensive, HDB's breaching SGD 1 million for the first time. The ratio Home price / Average income is 4.4, that means that indeed selected property in China (and Hong Kong) with ratio's above 10 is outrageous expensive. I am not sure about the ratio in Malaysia, but in Penang double-story houses are also close to RM 1M, up a lot over the last few years.