By Rory, The Daily Coin
I had the good fortune to sit down with Dr. Marc Faber, economist and market forecaster, publisher of GloomBoomDoom Report to discuss the current state of economic affairs from a global perspective. We touched on the failures and criminality that have become U.S. economic policy and how this is impacting the rest of the world. We also discussed how the Eastern world is rapidly taking over every aspect of commerce, finance and economics the world over.
The economic situation we find ourselves is very delicate at this time. We have major economies, like the U.S. and Europe, that are either at a standstill or in a full blown recession/depression. It really depends on which set of numbers one uses as a guide. Most of the government statistics are either “massaged” or simply made up to fit the political agenda of the day. With this being the case, on a global scale, it is difficult to know exactly what is happening in our economic and financial worlds. The truest measure, for me, is when I go to the grocery store and my weekly food/household items have, once again, gone up. Or when I receive a notice from my private insurance carrier stating that my premium will be going up by 42% on January 1 and the deductible will be rising by 12%. These numbers don’t lie about the reality of our current situation. I believe 42% inflation could be considered hyperinflation or just below. I’m not an economist, as Dr. Faber is, but I know that 42% inflation is unsustainable for most people.
Dr. Faber gives us a brief history on the heartland, which is the land mass between Russia and China. This is the coming global economic force that is being built right in front of the world and no one notices. What will this mean to the Western world? How will the alliance of the Shanghai Cooperation Organization (SCO) and the Eurasian Economic Union (EEU) impact your neighborhood? These two economic unions have formally announced they will begin working more closely together and developing strategies for future business. The SCO alone will encompass approximately 45% of the global population and 70% of the global natural resources. Once you combine these staggering figures with the populations that are currently under the EEU umbrella along with the natural resources, you can see pretty clearly this will have a direct impact on every country, every citizen the world over. The resources and population are going to make an impact on commodity prices and the cost of raw materials. Once you combine these realities with the fact that China and India are, basically, the global manufacturing centers, the picture changes and one can see that the Western world needs to put their weapons down and begin making an alternative plan for the future. The Western world can no longer afford to have war as their business model. The Eastern world does not need to fire a shot in order to bring the West to it’s knees. The East will simply continue creating all the wealth which will make the West to weak to fight back. The West has become it’s on worst enemy.
Let’s listen in to Dr. Marc Faber and get an idea of what all this means.