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Marc Faber (with his scary German accent) predicts that China's bubble could burst and could be a global catastrophe.


I've heard a lot of this kind of position on government's monopoly to print fiat currency like from Ron Paul, Peter Schiff, advocates of the Austrian School of Economics, journalists like Judge Nap or Stossel, fellow libertarians here in the Philippines, and other individuals who believe in freer markets—but this guy just blows me away—the fact that people call him "Dr. Doom" and his scary (but very very probable) predictions are accompanied by an absolutely scary German accent.

I'm sure my non-libertarian readers don't really know much about central banks, monetary policy, and the arbitrary inflation ("printing" of money) by the bureaucrats who are appointed to have these powers. So I was thinking, just as Peter Schiff and other free marketers predicted the US housing bubble and recession years before it happened (and ironically people blame the "free market" for these), I could probably make some predictions myself and you guys (my non-libertarian readers) will be like, "oh my, this guy is an absolute precog prophet of some sort and we should listen to him all the time!".

I was thinking, what if the Mayan calendar was actually predicting not the end of the world but the collapse of welfare states (it's already happening now, especially Europe, but they just continue to bail each other out and continue their addiction to inflation). If such a thing happens to an influential economy such as China's, it could truly be catastrophic just as Dr. Doom predicted.

And how timely that the next US election is 2012 and many predictions I've been hearing, again just like Marc Faber above, believe that Obama will be re-elected and Bernanke will continue the same delusional inflation and faith in Keynesian mythology.

I'm not saying that it will happen in 2012, I just think it would be poetic justice if it does, what I'm really trying to say is that it is inevitable: the booms will bust, the bubbles will burst, and the catastrophic effects will be global.

So since there's really no one listening to libertarians (my friend even suggested that Ron Paul really shouldn't win else he would be ironically blamed for all of this), I guess the only rational thing to do now is plan and prepare for a post-apocalypse scenario. Things like the emergence of authoritarian junta governments to "protect the peace and security of peoples in times of chaos" (martial law) will come: properties will be seized, liberties will be lost, there will be chaos in the streets.

Then there's the possibility of World War 3 (many Keynesians actually believe that war is good for the economy) as nations with nuclear capabilities may want to take advantage of this opportunity (we've seen Russia attack Georgia just a few years ago, plus there's the middle east conflicts, and let's not forget North Korea).

I know many of you are thinking that I'm letting my imagination go wild again but as Malaclypse the Younger once said, "Indeed! But do not reject these teachings as false because I am crazy. The reason that I am crazy is because they are true!".

We can all try to put a stop to this by learning more about the arguments of the Austrian School to the Keynesians, the flaws of economic central planning, monetary policies and where our money comes from, precious metals like gold and silver, booms and busts and business cycles. It may all sound boring but in a nutshell, our money isn't based on gold (as many of you think), it is fiat currency (inflated arbitrarily by appointed bureaucrats, randomly, "from thin air") and this system can no longer sustain itself and is in the verge of collapse.


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