I’m Sure There will Be An Agreement, But It Doesn’t Solve The fundamental Problem Of Excessive Debt & Very Substantial Deficits

“Yes, I’m sure there will be an agreement, but it doesn’t solve the fundamental problem of excessive debt and of further, very substantial deficits. They’ll iron out something with lots of compromises and with spending cuts that are backloaded, in other words they won’t happen immediately. As we go along say in three or five years' time when these spending cuts should occur and when the tax increases should occur, nothing will happen in my opinion.” - in IL

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The Case For Gold

“Well I think investors are gradually realizing that it’s unusual, with all of the problems in Europe that the euro is actually relatively strong against the U.S. dollar. They are realizing U.S. holders don’t want to hold euros because they don’t trust the euro and the Europeans don’t want to hold dollars because they don’t trust the dollar.” - in BeaconEquity

Related: SPDR Gold ETF (GLD), IShares Silver ETF (SLV)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The Ultimate Currency Is Gold

The ultimate currency is gold...and silver. - in KWN

Related: SPDR Gold Trust (ETF) (NYSE:GLD), iShares Silver Trust (ETF) (NYSE:SLV)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

I Could Make The Case That Gold Today Is Inexpensive

I just calculated if we take an average gold price of say around $350 in the 1980’s and then we compare that to the average monetary base in the 1980’s, and to the average US government debt in the 1980’s...but if I compare this to the price of gold to these government debts and monetary base, then gold hasn’t gone up at all. It’s gone actually against these monetary aggregates and against debt it has actually gone down. So I could make the case that probably gold is today very inexpensive... - in Business Insider

Related tickers: SPDR Gold Trust (ETF) (NYSE:GLD), Newmont Mining Corporation (NYSE:NEM), Barrick Gold Corporation (USA) (NYSE:ABX) , Goldcorp Inc. (USA) (NYSE:GG), Yamana Gold Inc. (USA) (NYSE:AUY), NovaGold Resources Inc. (USA) (AMEX:NG), Ishares Silver ETF (SLV), Hecla Mining (HL), Silver Wheaton (SLW), Kinross Gold (KGC), New Gold (NGD), AngloGold (AU), Freeport McMoran (FCX)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

I’m Sure There Will Be An Agreement, But It Doesn’t Solve The Fundamental Problem Of Excessive Debt

Yes, I’m sure there will be an agreement, but it doesn’t solve the fundamental problem of excessive debt and of further, very substantial deficits. They’ll iron out something with lots of compromises and with spending cuts that are backloaded, in other words they won’t happen immediately. As we go along say in three or five years time when these spending cuts should occur and when the tax increases should occur, nothing will happen in my opinion. - in King World News

Tickers: ProShares UltraShort S&P500 (ETF) (NYSE:SDS) SPDR S&P 500 ETF (NYSE:SPY) SPDR Dow Jones Industrial Average ETF (NYSE:DIA) ProShares UltraShort QQQ (ETF) (NYSE:QID) PowerShares QQQ Trust, Series 1 (ETF) NASDAQ:QQQ)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Ben Bernanke Is A Typical Academic

I feel sorry for Mr. Bernanke because he really doesn’t get it. He doesn’t understand. He’s a typical academic. You know, a typical academic is a professor of medicine that knows everything about how a patient becomes sick but doesn’t know how to cut something like a butcher and therefore, can’t operate on a patient. Mr. Bernanke academically knows everything, but has no clue about the real world. No clue whatsoever. - in Financial Sense

Related Tickers: SPDR Gold ETF (GLD), IShares Silver ETF (SLV), SPDR S&P 500 ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), PowerShares QQQ Trust, Series 1 (ETF) (QQQ), ProShares UltraShort S&P500 (ETF) (SDS), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Russell 2000 Index (ETF) (NYSE:IWM), ProShares UltraShort QQQ (ETF)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

I Don't Think They Will Default On The Debt

Yes, I think they will somewhere, somehow come to an agreement or they will fiddle around with the debt ceiling or invoke the Constitution whereby the President, in a special situation, can actually increase the debt of the US.

Something will have to happen....but, I don't think they will default on the debt. - in CNBC

Tickers: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Video Interview: FInancial Sense Newshour (53 min)

Latest video interview on Financial Sense Newshour.

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Dangerous Are Government Bonds, Dangerous Is Cash

Dangerous are government bonds, dangerous is cash. More desirable is probably real estate, especially in the United States at this level (it still can go down 10 percent or so but its reasonably priced or even cheap), equities and of course precious metals. - in Financial Survival Radio

Related Tickers: Toll Brothers, Inc. (NYSE:TOL), D.R. Horton, Inc. (NYSE:DHI), PulteGroup, Inc. (NYSE:PHM), KB Home (NYSE:KBH)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Gold Will Be Substantially Higher Over The Next 5-10 Years

I rather see that over the next 5-10 years we will have substantially higher gold prices, or expressed differently, lower purchasing power of paper money. - in CNBC's Worldwide Exchange

Related Tickers: SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Goldcorp (GG), Barrick Gold (ABX), Kinross Gold (KGC), Anglogold (AU)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

It's Time to Buy US Real Estate, But Choose Carefully

Latest video interview, Financial Survival Radio.

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The Risk Is Not To Hold Gold

The risk is not to hold gold. Whilst there is the potential for 10 percent downside in the short term over the next 5 to 10 years the gains will be big. Or put another way, the purchasing power of paper money will fall.

Cash is very risky asset except in times of major market corrections. - in CNBC

Related Tickers: SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Novagold (NG), Goldcorp (GG)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

I Don’t Think The US Will Default In Terms Of Not Paying The Interest On Its Debt

I don’t think the US will default in terms of not paying the interest on its debt. They will though default via a falling dollar as Bernanke begins printing more money. - in CNBC

Related Tickers: SPDR Gold ETF (GLD), IShares Silver ETF (SLV), SPDR S&P 500 ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), PowerShares QQQ Trust, Series 1 (ETF) (QQQ), ProShares UltraShort S&P500 (ETF) (SDS), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Russell 2000 Index (ETF) (NYSE:IWM), ProShares UltraShort QQQ (ETF)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The Best For The US Would Be To Have A Flat Tax On Everybody

I think the problem is this: you have two parties, the Democrats, they want to spend and the Republicans, they don`t want to increase taxation.

I think, as an economist, I would say that the Republicans are probably closer to the "right way", mainly to spend less and to actually lower taxation for everybody.

But my argument as always been, the best for the US would be to have a flat tax on everybody. - in Financial Survival Radio

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Debt Ceiling Talks

Latest video interview on Financial Survival Radio.

Tickers: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The Australian Housing Market Is In A Bubble

If you have been lucky enough to have owned Australian real estate over the last few years, you may want to take profits. The Australian housing market is in a bubble and is very susceptible to a housing crash. The likely catalyst for the sharp decline would be a major slowdown in China, which would depress demand for commodities. - in Commodity Online, a snapshot of The Gloom, Boom & Doom Newsletter

Tickers: iShares MSCI Australia Index Fund (ETF) (NYSE:EWA), National Australia Bank Ltd. (Public, ASX:NAB), Australia and New Zealand Banking Group (ASX:ANZ), Westpac Banking Corporation (ASX:WBC)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

We Can Rally To 1330, But August, September-October Will Be Rough Months

I think we can rally to around 1,330 on the S&P now, but not make a new high above the 1,370 highs, which we saw in May. And then, in my view, we would be going down to maybe 1,150 on the S&P.

I think the second half of August, September-October will be rough months. - BeaconEquity

Related Tickers: SPDR S&P 500 ETF (NYSE:SPY), ProShares UltraShort S&P500 (ETF) (NYSE:SDS), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ), ProShares UltraShort QQQ (ETF) (Public, NYSE:QID), SPDR Dow Jones Industrial Average ETF (Public, NYSE:DIA), Apple Inc. (Public, NASDAQ:AAPL), General Electric Company (NYSE:GE), iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM), Financial Select Sector SPDR (ETF) (NYSE:XLF), Netflix (NFLX), United States Steel (X)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Gold Is Undergoing A Short-Term Correction

Gold is undergoing a short-term correction, which is natural during a bull market. The correction could take gold to as low as $1400. This would represent an excellent buying opportunity for investors. To counter the anti-gold crowd, Faber emphatically states that gold has not reached a major top and is likely to trend higher later this year. - in iStockAnalyst

Related Tickers: Tickers: SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Anglo Gold (AU), Goldcorp (GG), New Gold (NGD), Novagold (NG), Seabridge Gold, Inc. (USA) (AMEX:SA), Seabridge Gold Inc (TSE:SEA), Rubicon Minerals Corp. (TSE:RMX), Goldcorp Inc. (TSE:G), Kinross Gold Corporation (TSE:K), Yamana Gold Inc. (TSE:YRI), Yamana Gold Inc. (USA) (NYSE:AUY)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Bearish On The EURUSD Currency Cross

According to the iStockAnalyst website, Dr.Faber is bearish on the EURUSD currency cross:

"Everyone and his brother loves to hate the US dollar and expects it to decline further. While Faber despises the dollar long-term, he thinks it is attractive compared to the Euro. In fact, Faber recommends investors short EUR/USD as the situation in Europe is likely to deteriorate. The recent bounce in EUR/USD provides a good entry to initiate a short position."

Tickers: SPDR Gold ETF (GLD), IShares Silver ETF (SLV)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Stocks May Rally in July-August But A More Severe Drop Is Coming Later

iStockAnalyst summarized Dr. Faber`s view on the US stock market based on his latest Gloom, Boom & Doom Newsletter:

"The stock market is going to rally in the short-term (July-August), but equities will not surpass their previous highs reached back on May 2. After this bounce, Faber believes the market will decline sharply to around 1100 on the S&P 500 (during the September-October period). This is when the Fed will likely consider implementing QE 3 to stimulate asset prices."

Tickers: SPDR S&P 500 ETF (NYSE:SPY), ProShares UltraShort S&P500 (ETF) (NYSE:SDS), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ), ProShares UltraShort QQQ (ETF) (Public, NYSE:QID), SPDR Dow Jones Industrial Average ETF (Public, NYSE:DIA), Apple Inc. (Public, NASDAQ:AAPL), General Electric Company (NYSE:GE), iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM), Financial Select Sector SPDR (ETF) (NYSE:XLF), Netflix (NFLX), Ford (F)

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.