Marc Faber Returns: My 2026 Prediction Is “Doom” (Sell US Stocks)

Which is it going to be this year? Is it

gloom? Is it boom? Is it doom?

>> This won't be very good.

I It will be doom. This year we'll get the big breakout of interest rates either up or down and the stock market

will not like it. I'm telling you, you have to think how to will I lose the least when things go down.

>> Don't forget to sign up for a free portfolio review with one of our endorsed investment partners at wealthon.com/free.

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Hello and welcome to Wealthon. Maggie

Lake and joining me today to discuss the risks and opportunities ahead in 2026 is Mark Faber, the publisher of the Gloom, Boom, and Doom Report. Hi Mark, it's wonderful to have you with us.

>> Well, thank you very much for inviting me to this interview and uh good day uh to your viewers and listeners

and I wish you all a successful uh 2026.

Mhm. That that may be that may be challenging, but I think I think we're up for it. And I I feel like we we have to start with this obvious question,

which is which is it going to be this year? Is it gloom? Is it boom? Is it

year? Is it gloom? Is it boom? Is it

doom? Or maybe a little bit of everything. What are you expecting?

everything. What are you expecting?

>> Well, I have to be consistent and say that this won't be very good.

I it will be doom.

Uh I think uh that uh we had exceptional years uh post 1980

which was the peak in interest rates and since 1980 interest rates have been in in a downward trend until August 2020.

And since then we have a rising trend in inflation and a rising trend in interest

rates and commodity prices. And my view is that uh

asset prices have been badly inflated >> over the last 40 years or so. I mean,

when you think of the time you were a child and how much things would cost at that at the time in especially education

and insurance premiums and so forth and so forth.

Uh we have to say that there has been a lot of inflation and in my view

what has changed now is the following.

during inflationary times the problem is that the price level doesn't go up evenly as you know

I said if the price level was going up evenly nobody would be hurt >> but no the price level goes up very

strongly in this sector and then another day in that sector or another year in such sector and so forth And uh the way

money printing works is it flows first to Wall Street. So, Wall Street takes a huge cut and then some money flows onto

the banks and insurance companies and so forth and some money flows into the real estate market and but it's very

irregular and we've seen say in the last five years prices for consumer goods at the supermarket and so

forth have gone up a lot but the prices of commercial properties have collapsed.

They're properties that are down 80%.

despite all the money printing and so I don't believe that you can rely on money printing forever and what is happening now and does that

has never happened before the Fed seems or central banks seem to have lost control about some interest rates. They still

control the short-term rates. They can

increase the fat fund rate or decrease the fed fund rate but the bond market the 20 years the 10 years the 30 years

bond market may not be reacting favorably. In other words, Trump his

favorably. In other words, Trump his dream is to have 1% interest rates by year in 2026.

He could he may achieve that 1%. But I

as a bond holder I don't want that.

>> I want tight money so that bonds and money keeps its purchasing power at 1% interest rates. Uh my view would be that

interest rates. Uh my view would be that inflation would accelerate significantly. Then then we have to

significantly. Then then we have to define what is inflation. You know, for most people, when prices go up at the supermarket, that's inflation. But when

stocks go up, that's a bull market. And

when property prices go up is a bull market. So, what what

market. So, what what it's it's rather difficult and complex, but my sense is that

uh the bond market say the last three years, >> the bond market has been kind of moving sideways. And that was interest rates

sideways. And that was interest rates have neither gone up substantially nor go down for substantially except in some countries like Japan interest rates are up substantially

percentage wise they're still very low but percentage wise and in my view this year we'll get a big

breakout of interest rates either up or down and the stock market will not like it >> even if It's down.

>> Interest rates are not particularly high at the present time. So the 10 years is at roughly 4%.

time. So the 10 years is at roughly 4%.

I don't think that the cost of living of people is going up by 4% peranom. I

think the cost of living of people around the world is going up by say between six and 12%. M

>> and so the interest rate is not high in real terms and that is an inflationary environment.

And I believe that uh the only way interest rates would go down significantly is what I believe is

go is happening and will happen even more is that we are uh overestimating

growth. In other words, I think that uh

growth. In other words, I think that uh the economies certainly in the western world are contracting for the majority

of people. Now, if you tell me that

of people. Now, if you tell me that someone on Wall Street is making a lot of money, correct? The 1% or say 5% of

the population because they own assets. like myself,

I'm an economist and I'm a participant in the financial sector. So I benefit from money printing but as an economist

and social observer and historian I hate money printing because it destroy so it destroys societies.

We've seen in history many societies flourish and then for some reason conditions changed. The reaction was

conditions changed. The reaction was always print money and then the consequence was very negative long term.

>> This might be a good opportunity to ask because um obviously you your report is gloom boom and doom. So we're going to take it that you have a bearish that you

have a bearish posture about things. Why

are you or why have you for a long time been concerned? Where does your sort of

been concerned? Where does your sort of you know bearish outlook come from? What

is it rooted in? Is it this idea that you know that the financial system has sort of stopped working according to fundamentals after the 80s because you mentioned that

earlier. Why are you negative?

earlier. Why are you negative?

>> This is a good question because in life I'm very optimistic. I have five motorcycles, 1,00 cc each one of them.

And I ride in Thailand. Many people tell me, "Mark, I used to ride motorcycles in." I tell them,

"No, I believe that you know you you can avoid accidents with motorcycles and you need very powerful bikes. So you

can avoid accidents by accelerating.

Let's say you're in an overtaking maneuver and someone comes against you.

You can either break you and go behind the other car you want to overtake or accelerate forward.

>> No, you do. You have a need for speed and you're a risk taker, but you're but you're also >> I mean I also I used to be in a ski racing team, so you have to be a little

bit optimistic.

But I I studied economics and I want to make here an observation that I think is important.

People talk about the Austrian school in a kind of negative way. They think the Austrians, you know, what is Austria

today as a country? But at the time of the Austrian school, especially the early economies like Manger and so forth

around the at the end of the 19th century, beginning of the 20th century, it was the only economic school because

one reason America flourished in the 19th century is that there were very few politicians

and there were no economies.

So the economy was very free and free of interventionists.

>> The problem in America is that the economy is dominated by the Keynesian.

They believe you know in fiscal measures to boost economic activity and in monetary measure to boost demand.

when these interventions have a negative impact on the free market because the free market is a

self-regulating market.

you you avoid having interventions and this has been I mean I recommend your viewers to spend once an afternoon

when it is raining watching old speeches by Milton Freriedman because most of his speeches are like 10 minutes or half an

hour but they're very excellent speeches about freedom and democracy

and uh how economies prosper and how economists do not prosper.

>> The most extreme example of interventionism is actually communist socialism. What

they're getting now in New York and what we have with Mr. Trump, I would have voted for Mr. Trump any time compared to

the Democrats, but he is an ignorant interventionist.

He intervenes in everything and sooner or later he'll make a major disaster.

So, I think that's a really important context for for understanding where you come from because it's rooted in economics because it's easy to think that, you know, it's easy to just sort

of be a doomonger and but this is this is rooted in a feeling that that there's artificial uh intervention in the economy that's hurting it. So, that's that's very

hurting it. So, that's that's very helpful. So against that backdrop, what

helpful. So against that backdrop, what do you think about uh where we are with US equities because many people who are watching this but also just in the

United States and frankly the rest of the world overexposed to US equities, right? Everyone uh has piled into US

right? Everyone uh has piled into US equities. Not everyone, but a large

equities. Not everyone, but a large number of >> most people.

>> Most people. So what what is what do you see how do you feel about the US stock market sitting at these record levels?

Do do the economic fundamentals support these valuations?

>> Most people own Tesla and Nidia around the world. They trade them 24 hours a

the world. They trade them 24 hours a day.

>> True.

>> And they trade options and you know all kinds of products.

leverage is a symptom of excessive money in this in the system and of a bubble. Anyway, but to your

question, we have to measure uh assets in a unit of account and

normally what we use is the US dollar or Europeans may use the Swiss rank or the euro or what not. But you understand if

all the central banks in the world print money then a paper money is no longer a good unit of account.

>> So let's measure the SNP against gold.

say if we if I would make an argument I could say look paper currencies are not worth very much

because they are being produced by central banks and the quantity is increasing. We can measure this easily.

increasing. We can measure this easily.

And the gold price reflects the stability of an uh a store of value. Money is a store

of value and the unit of account. So

gold would be the one measure against which we could uh kind of uh calculate prices. We can calculate the price of

prices. We can calculate the price of oil against gold and the price of copper against gold and silver against gold and platinum so forth and we can calculate

the price of the Dow Jones and S&P against gold and against gold in the last few years financial assets have gone down

>> everywhere and in my view the US market as you pointed out

is now something close to 65% of the global stock market capitalization.

I remember Japan in 1989 was 50% of the world stock market capitalization.

a small island, a very small land mass with 120 million people and the population that was already then beginning to decline

and they were half the world's stock market capitalization because of the huge overvaluation and the

palace the imperial palace was valued in terms of land price at the whole of California in the United States.

>> So completely crazy valuation.

And I remember this well because I was invited at the end of the 1990s to a conference by Morgan Stanley and Richard

Strong at the time he was running the Strong Funds. He said to me, "Mark, if

Strong Funds. He said to me, "Mark, if Japan could go and sell at 50 times earnings, why can't the US sell at 50 times earnings?" And this has happened

times earnings?" And this has happened during the com bubble and now more recently the fun and fun related stocks because a bubble is always concentrated

in one sector in one object of speculation. Anyway,

speculation. Anyway, uh my bearish view stems also from the fact

that early on in economics I became interested in cycles in the Conrad cycle in the Kusnet cycle in the

kitchen and juggler and so these cycles fascinated me because I don't believe that you can precisely

measure them Because you understand an economy is like the sea and that's a waves and the boat is going through the

waves and shakes a bit and so forth. The

passengers go lean on one side of the boat and then on the other side depending where they are whales and

sharks and so forth.

And uh these cycles are existent but to measure them precisely mathematically is very difficult. And this an American

very difficult. And this an American economist already described quite uh efficiently. Irving Fiser for me

efficiently. Irving Fiser for me the greatest American economist. Not a

nice character. He was the president of the eugenic society.

>> Yes. like canes in England, the eugenics are typical interventionists. You know,

they want to measure to change humans and cultivate humans like pigs and plantation and so >> we we'll leave you all to go down that

rabbit hole. It's not a nice one. But um

rabbit hole. It's not a nice one. But um

but you like you you liked his economic thinking.

>> Yes. But but it's not only economics you know you and I go through cycles. We're

born we become strong. Our strength

speaks out depending on which sport we at but say around the 30 the maximum

strength of athletes is reached. A win a downhill pass. You and I will not win

downhill pass. You and I will not win any marathon that I guarantee you. by

your looks.

>> I I I I don't know if I SHOULD BE OFFENDED OR FLATTERED THAT YOU see me that I'm seeing, but yes, you are quite right, Mike. I am not winning any

right, Mike. I am not winning any marathons right now.

>> Yes. But but you can win intellectually.

But the point is simply everything moves in cycles and we see that also in societies. Societies become rich and

societies. Societies become rich and then they go downhill. is inevitable.

Inevitable.

>> So, so are you saying the US is in decline? Our cycle is over.

decline? Our cycle is over.

>> This is a very good question because uh it's all relative. But one thing I can

say post second world war the US was way ahead of every of everyone else in the

world. say we in Switzerland in the 50s

world. say we in Switzerland in the 50s and 60s we said the Americans do it this way and they they have refrigerators we

didn't have these things you know this everything came from America in terms of consumer goods and uh nowadays

I c I started to work in 1970 on Wall Street 73 I went to Hong At the time I had been to Eastern

Europe, I had seen the disaster socialism and communism produces economically speaking

markets with rotten tomatoes and cues of people in Russia but nothing to buy.

Then in China, they had department stores with shelves that were empty and what you could choose is a blue dress or a green dress dress and so forth, but no

choices at all. And people were impoverished and worst of all under communism there's no freedom. So you

must do this and must do that. You're

not you can't develop your own initiative.

And then these countries starting essentially 78 with the open door policy in China they adopted the

free market not 100% free market but we have nowhere 100% free market they all

regulated but but free markets and what happened a huge explosion in the prosperity of a billion people, more

than a billion people.

>> And I can tell you, I've seen the horrors of socialism already in the 60s when we were racing in Eastern Europe

and so forth and afterwards in Vietnam, in China, in uh in Russia,

the Soviet Union and so forth.

The moment they transitioned into the market economy and the capitalistic system, everybody was lifted up in their

standards of living. That I can say everybody in China is better off today than they were 40 years ago. I can't say that of Switzerland and I can't say that

of Europe and the US. There's statistics

that would show that generation Z, I mean the young people today, they're worse off in terms of income and wealth

than their parents were when their parents were 35 years old. statistics

that are published by the Federal Reserve and there's no question that 70% of

Americans have not participated in the boom in the asset boom that we have.

They live paycheck by to paycheck.

>> So, do you think that are you expecting a stock correction and and if so, what's the trigger?

because you know we've been a lot of people have been worried about some of the dynamics that you're talking about for some time. Why now? What do you think causes the correction now or is

that not clear that we're get what?

>> It's a very good question because I've been thinking that for the last 40 years.

>> So we have to ask it. But do you not yet?

>> No. But in all seriousness, does it feel like we are getting to a tipping point in terms of debt and intervention and that there are let me put it a different

way because no one has a crystal ball.

Where do you see strains in the global financial system that worry you?

Well, I mean I'm sorry because I got distracted a bit but what I wanted to actually say it's very difficult to

measure anything nowadays when money printing is on >> but but one thing I can tell you let's

say if you if I measure your salary in gold terms I can say with confidence that your salary has gone down in the

last 20 years because I remember I wrote the book uh tomorrow's called Asia's age of discovery and the book was published

in 2001 and I for the rise of Asia relative to the rest of the world and so forth and

so on and but but I also talked about gold and its importance but in in 1999

you could still buy gold at $253.

And since then, gold has gone to, as you know, over 4,000. And the S&P has also gone up a lot. And with dividends, in

some cases, if you were fortunate, maybe you made more money in uh stocks than in gold. But in general,

gold. But in general, financial assets over the last 20, 30, 40 years have gone down with a v gold

>> and you can print money and this you say about the market going down. Well, what

can happen is that the stock market crashes but it goes up in nominal terms. is possible that you know in nominal

terms you go say from 40,000 to 80,000 but the gold price goes up five times or

the currency collapses but as I said all currencies are bad all paper monies are bad if you ask me Mark I don't feel comfortable in US dollars

what should I own I I don't see that the Swiss Franks would be a better option. I don't see the

Brazilian realale to be a better option and I don't think that the the Venezuelan Bolivar is very desirable and so

maybe the dollar is still the best option.

But a better option, the young people, the generation Z, they will say you should own bitcoins. Maybe,

but I feel more comfortable to own silver and gold and platinum.

>> Well, you're not alone because prices have run up greatly in those. Can it

continue?

>> Yes. But but you have to understand, look at who owns gold. You go and ask

10,000 of your viewers, how much gold do you own? Most people own not even 3%.

you own? Most people own not even 3%.

They own nothing. They inherited an earring in gold from the grandmother or something like this. And then they go

and say, "Yes, we have gold." But as a percentage of total assets, most people have very little gold. I'm sure you have

practically no gold in comparison to the value of your home and the value of your clothes and jewelry or whatn not. But

I'm convinced most that most Americans have no gold, but some have and they are strong believers in it. But it's maybe

not a huge percentage of the total assets because for the middle class the bulk of the assets is real estate,

residential real estate and that I think will go down because it's in a colossal bubble as well.

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So how much is there? We don't you know everyone's risk tolerance is different.

Everybody's financial means are different. So we can't address

different. So we can't address individuals but generally as a rule of thumb how much gold or precious metals should

people have as a part of their assets?

>> This is a good question. I mean, my friends who tend to be in the mining industry and so forth, I mean, Eric Spr

as an example or Tom Kaplan and so forth, they have the bulk of their money in gold and silver.

They don't believe in real estate. They

don't believe strongly in stocks, but they believe in physical gold and the m and they believe in the mining industry that you go and dig and then

luckily maybe you're lucky and you find something and so forth. I mean, I know Robert Freedelland well and Tom Kaplan and Eric Sprout and so forth. They think

that I'm not bullish enough about gold.

I I own gold, but what disturbs me is not disturb me, but I'm just saying I like cash flow.

>> You understand? I like high dividend stocks. I like stocks that have a

stocks. I like stocks that have a dividend yield of seven or 10%.

And uh the impact of compounding interest rates is gigantic. I mean if you're born and

is gigantic. I mean if you're born and you have a uncle and so forth and if it gives you just a thousand Franks and you put it at 4% perom you be you die very

rich.

>> So so it's interesting to hear you say that because I think when people hear um analysts and strategists talk about being bullish gold they think it's it's

a binary choice. You are gold a fan of gold and you don't like equities. You're

saying that there's room in both of your portfolios for yes an exposure to gold, but also for dividend. How do you feel about tech stocks? Is that where the bubble is? Would a rotation out of tech

bubble is? Would a rotation out of tech into other parts like dividend paying stocks be something that might work in 2026 or be advisable?

>> Yes, this is a very good issue that you're raising because I want to explain something to you.

They started to call me Dr. Doom in 1987.

It was not the original Dr. Doom. The

original Dr. Doom was actually Dr. Kaufman, Henry Kaufman, who worked with Sydney Homer. They were the grandfathers

Sydney Homer. They were the grandfathers of the American bond market. Anyway,

there was also Dr. Des Alchnau.

He used to be at first Boston and then but in Asia they call me Dr. doom after 87 and then I predicted that the

Japanese market would decline by 50%.

And we bought puts on the niki and my view was that given the fact that Japan was more than

50% of stock market capitalization in the world and if Japan would go down it would drag down everything else.

>> No, it didn't happen. The money flowed out of Japan into American tech stocks and the NASDAQ went ballistic after 1990.

And this is something that preoccupies me. I think

me. I think the US market is so big and the US economy is still a large economy, especially in terms of consumption, that

if there was a recession in the US and if there was a financial collapse in the US, that it would drag down other

markets. But last year, the US market

markets. But last year, the US market grossly underperformed.

For the first time since 2009, it underperformed emerging markets and Europe. So I could argue yes, you're

Europe. So I could argue yes, you're right.

The money could flow out of the MAC 7 stocks in America of the same iconductors as well and move into

emerging economies or move into China or move into India or move into Europe because these markets are all much

cheaper than the US if you measure the market uh by price to sales, price to book, price to earnings and so forth.

all markets in the world are essentially much cheaper than the US.

>> So rotation out of MAG7 NASDAQ or or US equities in general into the rest of the world.

>> Correct. That's I mean I live in Asia and I see what is happening in the world. Of course, what I don't know and

world. Of course, what I don't know and you also don't know and nobody knows is is it possible that we are entering

World War II. I mean, I studied his war cycles as well and I'm very interested in the war cycles. The conditions are

very good for war. But let's say uh we have peace in the world. then I

think emerging economies are going to be doing much better than the developed world. done is my belief

because the demographics are still rather favorable and uh we have societies when something goes bad people are used to tighten

their belts because we have in many Asian societies or emerging economies practically no social security. So when

things go bad you have to hustle and tighten your belt and take your own initiative and in western society the

problem is that people have become comfortable because we had I would say

when I look at my life I was fortunate to be born in 46 after the war and since then I benefited from an

economic expansion in the world from rising asset crisis from having been lucky and chosen to go into

the Wall Street in 1970.

And so the conditions for wealth accumulations were very favorable. was the conditions for freedom

and nowadays I think these conditions are no longer there because when I started to work the

salary level in general was high and asset prices were low. Say if I measure >> the Dow Jones the market cap as a

percent of the economy asset prices were low and salaries high and now salaries are relatively low and asset price is

sky high. So we have an affordability

sky high. So we have an affordability issue >> that as you pointed out Trump realizes.

So, uh, two questions. Um, how are you feeling about Latin America in light of the US action in Venezuela?

>> Well, >> and when you talk about emerging markets, have you has anything changed in terms of could that be a potential positive for Latin America? Is that a

negative for Latin America? Are you more bullish on Asia? I have written for a while that I was very positive about

Latin America because if war occurs the war is likely to be or the war theater is likely to be somewhere in

Eastern Europe, Russia, Europe, Russia, the the US and so forth and in Asia likely to be

between China and the US and that would and include Taiwan and it would likely

include Indo-China because say Thailand in the north we have China and in the

east we have Laos and Cambodia and in the west we have essentially Myanmar and

then Bangladesh, India and so forth.

So, we could be in a war theater, >> but uh Latin America, I think, is not

likely to be in a war theater. So, I

like Latin America and I've liked it also without Venezuela and so forth, but the valuations are also low. If I look at Latin American markets compared to

other emerging markets, then they're very cheap in especially Brazil. And I have

significant investments in Colombia.

Not because I anticipated the Colombian president to maybe get along well with Trump.

Who knows? But uh the stocks are reasonably priced >> and uh I also like Indochina because

Thailand is a failed state they say. But

most people they love Thailand. They

love going on holidays to Thailand and so forth. It's very free and it's very

so forth. It's very free and it's very safe. The safety factor is very

safe. The safety factor is very important. That's why I'm very positive

important. That's why I'm very positive about Singapore, Hong Kong. You can walk at night in Hong Kong. You don't have to be afraid to be mocked. It's not going to happen.

>> What do we We one one thing we haven't touched on are bonds, sovereign bonds.

Uh if you are concerned about the financial system, I wonder how you feel about bonds, especially because that used to be the safe haven, at least treasuries. You know, if if folks were

treasuries. You know, if if folks were worried about stocks, they used to up their exposure to bonds. Are bonds do bonds have a role in a portfolio now or is that an area that you're concerned

about? Government bonds.

about? Government bonds.

>> I'm concerned about everything.

>> Well, of course you are.

>> How concerned?

>> But I want to tell you something about bonds.

We can measure how people allocate money to what they you know they have an exposure to stocks or to gold and so

forth. We can measure that. At the

forth. We can measure that. At the

present time the allocation to bonds is tiny. people are don't own bonds and of

tiny. people are don't own bonds and of course sovereign funds and insurance companies and banks and so they own

bonds but by and large if you go to a room today and you tell people you should buy bonds most people would think that you're mad

especially with Trump who is a big money spender anyway my you is that the economy will be bad and very bad and the

sentiment about bonds is like the sentiment about oil is very negative. So

just based on sentiment figures we could have a rally and I told you I believe in diversification.

I have gold and I have stocks and I have real estate and I have some bonds and cash. Now

cash. Now the entire books about bonds, you know, like

this is the great bond market by Sydney Homer.

>> I see it's been thumbmed through a few times.

And this is the history of interest rates like 800 pages.

But it's very important because you can make a lot of money in bonds.

>> So you're so you would not there are people who have told me who on paper look like they agree with you or or share some of your concerns. They have

told me that bonds are uninvestable. You

disagree with that? I know these people who say that uh but they said many things in the past that were not correct. Just because they say this

correct. Just because they say this doesn't mean anything to me. Also what I say and what I think doesn't mean

anything because sometimes I do things in which I don't believe because I want to diversify.

>> Interesting.

I don't really I think that long-term bonds will be not be a good investment.

But I want to give you a scenario. Let's

say the bears about bonds who say they're not investable are right and bond interest 10 years is now say around

4% goes to 6%. That would be a strong increase in interest rates. Do you think that your the price of your house will

go up or down because the mortgage rates will go up? Number two, do you think your stocks will go up when the 10 years goes to 6%.

>> You have I people because of the bull market in assets for the last 40 years, they always think how do I make money by

buying assets? Which asset? But I'm

buying assets? Which asset? But I'm

telling you, you have to think how to will I lose the least when things go down. And I think the bond market

down. And I think the bond market is not attractive, but it may not go down as much as say tech stocks.

>> That's a really really important distinction. Really important

distinction. Really important distinction I think you're making and I think a good a good thing to for for everyone to keep in mind. Uh bit you mentioned Bitcoin before

in terms of diversifying are do you have any exposure to cryptocurrencies? How

are you feeling about that?

>> I have to admit I traded and I traded badly.

>> You would not be alone, Mark. You would

not be alone.

>> That I just I just bought them at very cheap low prices. I sold them much too soon.

I think that Bitcoin has not some value but it symbolizes

an aversion to paper money. Now the

young people as long if you read about money in societies in some societies shells from the sea were

money you know that and as long as people sort of believe in bitcoins they may

have some trading value store of value.

No, that I don't believe >> because I'm a believer that when the next war

will be a war where they switch off your internet and I'd like to see New York City without credit cards,

without uh electronics and without internet. That I want to see and without

internet. That I want to see and without light and without water. And when the food doesn't come into the city, I like to see the cities.

>> This is something people don't overlook.

The system today is dependent on supply chains. And if the supermarket cannot sell to you because

there's no more cash, it's all electronics and the electronics are breaking down. I tell you the mess will

breaking down. I tell you the mess will be complete complete.

>> So it's so interesting that you mentioned that for all the risks that people talk about that is not one that they bring up. They bring up the the threat of cyber security of

infrastructure but they don't connect it to Bitcoin. I was in New York in the

to Bitcoin. I was in New York in the last blackout. I lived there in

last blackout. I lived there in Manhattan when where there was no power for o over 24 hours. It was a surreal experience, but it was still an experience where we had cash, where most

people had cash on them and everything flipped overnight to cash business. Um,

and so the restaurants were serving and the bars were open and theaters were doing their performances outside, but it was cash. Nobody has cash anymore for

was cash. Nobody has cash anymore for the most part. So, that's a really interesting distinction and change that's happened just from those years ago. Um, and an interesting

ago. Um, and an interesting vulnerability for cryptocurrencies because they can't exist without access to the blockchain.

>> Absolutely. I mean, uh, if you go to the desert to do to a society in the jungle somewhere in

Africa or Latin America and so forth and you bring as money a fun painting, they laugh at you. Nobody will be interested

because they don't know what it is.

>> I can tell you you bring gold and silver, everybody will know.

>> By now, >> is there So, let's let's let's finish up with uh a question. Not sure if you have an answer to it, but is there anything

that you're positive about? Uh

techn I mean, you you've you you're worried about World War II? You're

worried about obviously um the nature of warfare which would really impact which has the ability to reach beyond a theater of war. If you

can turn off people's internet and turn off their electricity and their water supply, this is a completely different ballgame. But is there anything that

ballgame. But is there anything that you're that you're positive about or that you that would cause you to be less doomy and gloomy? Mark. No, I'm very

positive uh as an as as a have a positive attitude and nature of positive.

And uh one thing I want to point out because young people as you know they're leaning to the left and academics as well.

>> I'd like to say uh about this subject the following.

If you look at history, Napoleon, he couldn't move his armies at the faster pace than Julius Caesar, most

likely at the slower pace because the Romans, one thing they knew about is infrastructure. So, their infrastructure

infrastructure. So, their infrastructure and transportation uh the organization of transportation was very good.

And uh if you look at the world's population by 1800, it had grown from the time of Jesus

Christ, but not that much.

Uh the population in the world reached about a billion people in the early uh

1800s, say around 1840 and so forth.

And afterwards it exploded and the prosperity of people of the typical individual in the world in the

middle ages you know you had the king king and the feudals and they lived in a good life and everybody else was relatively poor or very poor. I mean

people took a bus once a year.

>> Yeah. It was horrible every six months.

I can't even watch the movies where they re recreate it. It's

>> I mean it's amazing.

And the changes that occurred in the 19th century starting already in the 18th century are incredible in the

sense that the market economy and the capitalistic system lifted the standards

of living. lifted the eagerness of

of living. lifted the eagerness of people to develop their own initiative to invent to innovate

incredibly and that lifted the standards of people's standard of living of people

and increased productivity. When you

think of it, say say in 1850 a large estate needed 3,000 workers in agriculture.

The result was that by 1900 most countries the largest uh group of people were employed in agriculture.

But after the industrial revolution that was favored by the capitalistic system they the socialists call them the rubber

baronss like Bezos is a robber barons.

What did Bezos do? He enabled people in the whole world to order a book.

So this is the advantages of capitalism and capitalism is not about servicing the rich people. No, capitalism is

making products so cheap that poor people can afford them. The result

is that for the first time in history today, a worker, a poor guy, he can drink the same drink like the richest

man, Warren Buffett, namely Coca-Cola. I

had to go to Coca-Cola because the doctor said my kidneys are not so good anymore. But raining you in, Mark.

anymore. But raining you in, Mark.

They're raining you.

>> I also have a beer here and the whiskey.

>> So, you're sort of not listening to him.

I'm optimistic.

>> But but I take your point that capitalism >> Yeah.

>> the point is simply when I look at Chinese the way they lived in n in the 1970s and the way they live today, I can say they are better off today than they

were 40 years ago. And in Russia the same and so forth. This is the work of the free market and of the capitalistic

system not of socialist systems. Socialism means stagnation and means impoverishment of the majority

and the enrichment and the corruption among a few elite. I think it's a it's an important reminder and I feel like this whole conversation is also um super

grateful for it because I feel like it's important to remember history and it's important to look back um as we try to forecast what's happening ahead and take pull some of those lessons and then

innovate on them right and so I think this was so fun for you to remind us of um some of the corollaries so thank you so much for that Mark it's been super fun

>> yes thank you I mean you know just the Fact, you are in the US somewhere. I don't

know where. I'm in Shang Mai in the north of Thailand. 20 years ago or so, this would not have been possible because the internet connections were not as good as they are nowadays.

>> Yeah.

>> But it's still an amazing thing that I can run a business, a financial business. I still have an office in

business. I still have an office in Okon, but I can run a financial business out of the north of Thailand globally.

that would not have been possible 50 years ago >> and I have Bloomberg on my laptop. I can

travel anywhere.

>> So, so um I I I think the the headline we're going to have is Mark Faber is still Dr. doom about some things but is an optimist and especially when it comes

to the power of capitalism, free markets and innovation >> drinking >> and and and an occasional whiskey when his doctor's not looking

>> and and by the way I read that and you know I listen occasionally to YouTube and some people said when you're old you

should learn something new. M.

>> So now I started to play pool. Do you

know how to play pool?

>> I I'm not very good at it at all. And

it's But it's not easy.

>> It's not easy, but it's a lot of fun because here it's in played in bars >> with girls and drinks. And I mean

all circus. And so I work usually until

all circus. And so I work usually until 2, three in the morning and then I go and play pool.

>> I want to have your stamina, Mark. when

when when I have as much history under my belt as you do. Um Mark, it was a great

you do. Um Mark, it was a great pleasure. I hope you'll come back with

pleasure. I hope you'll come back with us again soon.

>> Yes. Thank you very much.

>> Thank you.

>> Byebye.

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