The Marc Faber Video Blog features articles and videos from Marc Faber. A summary of each video is also provided. This page is updated with Marc Faber's investment advice and commentary on stock recommendations, the global financial markets, and the economy.

Marc Faber 2012 – Where to Put Your Money

The 15 trillion dollars of US debt is already higher than that. Between 2000 and 2011, the debt has grown three times, and the unfunded liabilities are growing at an alarming rate.

So the debt is closer to 50 trillion or 100 trillion. When the interest rate goes up, the ability to finance the debt will become very burdensome.

It is absolutely correct that the Federal Reserve can print money. That is why the bonds have hardly any yield. But they say that they would rather lose the purchasing power of their dollars than to lose those dollars completely in other asset classes.

As far as we are concerned today, this isn’t going to be a problem. But we have no idea how the world is going to look in 5 years time. So you should be diversified.

The reason we had the crisis in 2008 was too much debt and leverage. And now they are trying to solve the problems with more debt and leverage. So the outlook doesn’t look good.

The performance of hedge funds last year was pretty bad. The reason that they lost money was that the were trading at the wrong time. They were short at the wrong time and long at the wrong time.

The S&P has a good deal of support at 1100. And you can bet that if the index falls below 900, the Fed will come out with more quantitative easing in order to prop it up. Even if they don’t do this officially, they will do so with backdoor deals. So you can be fairly secure by owning equities.

In countries like Tailand or India or Indonesia, these countries have essentially zero exposure to European debt. Compare that to Switzerland, which is financially sound, but they are lending money to other European countries. So you would be much better off investing your money in some of the Eastern countries.

There is a misconception that the Asian countries depend on exports to the west for their economic strength. It is true that this is part of their business, but they don’t depend on it. A very strong domestic economy has emerged in the last few years.

The West believes that the whole world depends on the West. But that is just no longer the case.