Wednesday, March 4, 2015

The Collapse of the Second Most Powerful League on the Realm

Welcome back once again Denizens of Stormfall to the second edition of the Stormfall Chronicle. In last week's report, we discussed how the previously unbreakable Alliance was split in half, sides were drawn and a battle that is still having ramifications across the realm erupted.

The Chronicle received a wave of support and praise for the reporting of this news. Citizens of all walks of life have been able to clearly see the big picture for the first time ever, no longer kept in the dark by their masters.

Therefore, it is my great pleasure to continue to bring you the news that matters. The war has continued on and has in fact intensified. The most recent victim being a league that once held the honor of holding the second highest ranking across the realm, Throne of Kings, which was previously known as Kings of Camelot.

The reasoning for this name change, we are told, was to make their own path and shape their own future, too often were they lumped into and thought of as the same league as Knights of Camelot, the league which did and still does hold the top ranking in the realm.

Despite this change in name, there was no ill will between the two leagues, as both were steadfast allies in the partnership I discussed in last week's article, the "Alliance".

Unfortunately for the Throne of Kings, their time under their new banners was almost snuffed short, as the beacon wars which have engulfed the realm came to their very doorstep. Lands previously and long held by the Throne of Kings league have fallen into chaos. Balur himself could not of done a better job himself of spreading a wave of destruction and carnage.

The previous image gives you a clear picture of how truly chaotic the lands of ToK have become. Previously, Throne of Kings held almost the entirety of the North Eastern map. Now, as you can see, that has changed in a drastic way.

ToK, as stated, was always a proud member of the Alliance, therefore it came as no surprise that they would be entering the war against Destiny, when an agreement could not be reached and sides were drawn. 

This resulted in a series of battles which saw ToK seize a number of beacons held by Destiny. A retaliation was expected for these actions and the lands were not expected to be held. Unfortunately, what came next, Throne of Kings was not prepared for.

A series of what many would consider "smaller" leagues entered into the fray, some in partnership with Destiny, some simply monopolizing on the Chaos erupting in that part of the realm. 

This alone Throne of King could of eventually handled, but unfortunately it was struck at the same time by a collapsing leadership and a Marshal who was mysteriously missing. The remaining members battled on, fighting for their lives in a strategic retreat, but the damage was done. Morale was rapidly fading among the soldiers in the front lines.

Once loyal soldiers threw down their Tabards, suspicions ran a muck and mass demotion of ranks and privileges occurred within the remaining members. ToK knew there was a spy in their midst and intended to weed them out.

At this time, chaos is still raging in the North East. Balurs foothold undoubtedly grows stronger and leagues of various reputations now hold great swaths of land. Most notable Knights Templar and Fist of Honor, who gained the most from the conflict, rising rapidly in rank.

This has led to much wild speculation as to if Destiny acted alone or if there was someone else involved, someone more powerful behind the scenes, manipulating what we have seen unfold.

One thing is for certain. Another great change is coming to the realm. One even bigger than all the previous battles fought thus far in this, the greatest war ever seen in the realm. But that is a story for next week's edition. Until then, be safe, and keep those catacombs in good repair. Something tells me, we'll be needing them.

U.S. Dollar, Assets Prosper, but Not Economy

Marc Faber, editor and publisher of “The Gloom, Boom & Doom Report,” talks with Tom Keene about the U.S. economy and global interest rates. He speaks on “Bloomberg Surveillance.”

Sunday, March 1, 2015

Faber: China's Unwind 'Will Be a Disaster'

Marc Faber, managing director and founder of Marc Faber Ltd., comments on the state of the Chinese economy. He speaks with Trish Regan and Matt Miller on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Thursday, February 26, 2015

Marc Faber: China is growing 4% max; Greece on the Brink

With only two weeks left until Greece’s current bailout program expires, Eurozone finance ministers will take another stab at hammering out a deal between Greece and its creditors on Monday. The talks on Monday are key because they’re the last chance for the new Greek government to ask for a technical extension of its current bailout program, which runs out on February 28th. Erin weighs in.

Then, Erin is joined by Marc Faber – editor and publisher of the Gloom, Boom & Doom Report and director of Marc Faber Ltd. Marc gives us his macro view on China and the industrial commodities space. In China, Marc believes the real GDP growth rate has slowed to 4%. On the commodities side of things, he believes that the high cost of production will eventually lead to a price resurgence. But he says there will be pain in the short run. Faber also opines on the expensive US market, IPO foibles and the increase in bonds carrying a negative yield. His biggest warning is a 50% correction in shares.

After the break, Boom Bust Producer Bianca Facchinei sits down with DC Council Chairman Phil Mendelson to discuss how a government spending bill has halted Initiative 71 – a ballot initiative on legalizing marijuana in the District of Columbia – from proceeding, even though voters already approved of it.

And in Defining Moments, our guests give us their takes on oil, Greece, and quantitative easing. Guests include Steve Keen, Richard Werner, Frances Coppola, Reggie Middleton, John Brynjolfsson, and Jim Pearce. Take a look!

- Source, Russia Today

Faber: Dump Biotech, Short Central Banks, Buy Gold

Mark Faber says the biotech sector, as well as social media and chip stocks, are due for a plunge. He also thinks investors will lose confidence in central banks.

- Source, WSJ

Monday, February 9, 2015

The ECB and the Federal Reserve are one and the same

I think the US government, when gold really starts to move, will take it away. They will pay something. Say like in 1933, they paid $25 per ounce of gold that people held, and after they have collected most of the gold – of course not the gold that was held by government officials, or to precisely say “by corrupt government officials,” because they’re all corrupt – they revalued the gold to $35. So the investor lost out. And I think what will happen, the US will eventually, under some kind of an excuse, whether it’s terrorism or whatever it is, expropriate gold. They’ll pay, say, at today’s price, $1220 an ounce, and then they’ll go to the ECB.

The ECB and the Federal Reserve are one and the same. The Bank of England also. They talk to each other every day. They’re the chief manipulators of everything. And then they say to the ECB, “Well, because we do it, you also should do it,” and the Draghi-type of – I don’t want to say what I think of him, but I say, Draghi-type of personalities, they’re saying, “Yeah. Yeah. We’ll do it also,” and then the Bank of England, of course, will do it also. Then they knock on the doors of the thrifts and say, “You thrifts, you also have to do it,” and the thrifts, they have no backbones anymore. The thrifts will say, “Okay. We’ll also do it.”

And so the threat is really for an investor, is where do you store your gold? Because if you have it in a bank or in an ETF, it may be taken away. And whereas I think that the Sprott Physical Gold are the best ones. When the US knocks on the door of Canada and says, “You have to do the same,” the Canadians will also say, “Yeah. Okay.” And so the best, probably, to store gold in Dubai, in Hong Kong, Singapore, physically.

- Marc Faber via Sprott Money, Ask the Expert Interview

Friday, February 6, 2015

The Problem With Communism

The problem with communism was that the whole economy was run by the government. In other words, essentially the whole economy was 100% government. That was a problem. In Singapore we had the leader, for the last, essentially, 50 years, and he’s done a great job. And in other countries also we had great leaders, but the issue really is, “How much government do you want? How much transfer payments do you want?” In my view, a small government is the best, the maximum, say 15 to 20% of GDP. But now, in the Western world, we have, through all the transfer payments, governments that are close to 50% of GDP, and in some countries, more than 50% of GDP.

- Marc Faber via Sprott Money

Tuesday, February 3, 2015

What is a Legitimate Government

“What is a legitimate government?” Today we have a government, basically in the Western world, that has more voters who receive something from the state then people that actually pay for it. And so I think that democracy is an untested system. We had, maybe, 7000 years of history of civilization, and democracy is precisely, roughly maximum 100 years old, maximum, because in many countries, full democracy was only introduced less than 100 years ago.

- Marc Faber via Sprott Money

Saturday, January 31, 2015

There Are Many Reasons For Oil's Weakness

My view is that there are many explanations for the weakness in oil, including some theories that Saudi Arabia wanted to weaken Russia or the shale oil production in the US or Iran, and so forth. But my view is that the decline and sharp decline in oil prices signals a weakening global economy.

Now, in the last few days, I received many reports by brokerage firms and banks, and so forth. They all think that next year the economy in the world will be stronger than in 2014. This would not be my view. Reason A, the low yields on government bonds, that would seem to suggest to me that there are still some growth issues in the global economy, and the sharp fall in the industrial commodity prices would also suggest to me that the economy will be weaker than expected.

And I live in Asia. I can say that we’re not in a recession or in a deep recession, but there’s very little growth at the present time. In fact, I would argue that there’s hardly any growth at all. And as far as Russian oil stocks are concerned, and I think the oil price can rebound here short-term, but you might as well buy some oil drillers in the United States or oil servicing firms or oil companies. Why take a huge risk in Russian oil companies?

- Marc Faber via Ask the Expert Interview

Wednesday, January 28, 2015

The US Dollar is Not the Ugliest Among Several Sisters

If the US buys its own bonds, then because of the status of being a reserve currency, they basically buy their own currency. If foreign governments would start to ease massively, then I suppose the currencies would weaken.

Now, you may say, “Well, why did the dollar strengthen amidst the fact that the US has printed money?” Well, there are some reasons. First of all, maybe the US dollar is not the ugliest among the several sisters, and two, because of the increase in oil production in the United States, the trade deficit has narrowed, and so the dollar can be strong for a while. I don’t think it will last, but the consensus is that the dollar is the strongest currency around. And these other countries, say if Thailand or Singapore or Indonesia would start to print money, then they would weaken their currencies, or that would be the perception.

- Marc Faber via Sprott Money

Sunday, January 25, 2015

Marc Faber See's Value in Agricultural Companies

Faber has consistently warned since the late 1990’s that this dynamic would come to pass as the West and the U.S. in particular exported its industrial infrastructure and binged on consumer junk fuelled by easy credit while the emerging economies of east Asia used the proceeds to focus on production rather than consumption to become industrial powerhouses.

He went on to say,

“In the countries that opened up post breakdown of the socialist/communist ideology – China, Soviet Union, Eastern Europe - and India of course we have an entire generation who will earn much more and will have a better standard of living than their parents had.”

He highlighted certain factors that are leading to this lower standard of living for young western people. Banks now generally charge more to hold one’s money than the interest they pay out. He cites the yields on Swiss ten year bonds at 0.46% as an example of how people, and especially young people, are disadvantaged relative to previous generations.

“These people will not enjoy the compounding impact that I enjoyed having started to work in 1970 when bond yields were 6% and they went to 15% and so forth. So during that period of time wealth was accumulating very rapidly plus we had a huge boom in real estate and in equities and bonds between 1980 and 2007.”

“That is not going to happen again.”

Agricultural commodities including palm oil and Asian companies processing agricultural produce is where Dr. Faber currently sees value. Some of these companies in Malaysia and India, for example, pay dividends between 2% and 4%.

The young people who invest in these types of company will see their wealth steadily rise as opposed to their western counterparts who rely on the casino of rising paper asset prices.

Faber also likes the stock market in India and thinks it could see gains of 15% next year. The new government is free market and enterprise friendly and Faber believes the central bank in India is the “world’s best central bank.”

Dr. Faber is a long time proponent of owning physical gold. He has consistently urged people to act as their own central bank in acquiring bullion coins and bars as financial security and he believes that storing gold in Singapore is the safest way to own gold today.

- Source, Gold Seek

Thursday, January 22, 2015

Younger Generations Will Earn Less Than Their Parents

“I meant that with respect to western societies and Japan where essentially the younger people – today’s generation – will earn less than their parents and they will have less wealth than their parents, inflation adjusted.

This is because we will have wealth taxes, we will have more estate taxes and we have essentially declining real median incomes in the western world and Japan.”

- Marc Faber via a recent Gold Seek Interview
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