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<p>[QUOTE=&quot;InfleXion, post: 1611170, member: 29012&quot;]I&#039;m not a huge Faber fan, but I generally like to hear his perspective, and he seems to know his stuff better than the vast majority.&nbsp; </p><p><br /></p><p>Regarding this article in particular he has done what so many fail to do and quantified his reasoning. Kudos to him for that. Now let&#039;s get into the details <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" />&nbsp; </p><p><br /></p><p>His first point is that the dollar will strengthen because it&#039;s not in as bad of shape as the Euro. This is the opposite of what Peter Schiff thinks in his recent YouTube video titled &quot;Congress Sells America Down the River to Avoid the Fiscal Cliff&quot;. Schiff believes the Euro situation has stabilized for the time being (my assumption for this reasoning being that the troika is content to let Greece restructure their debt indefinitely), and I tend to agree with him on this one. With the US debt ceiling on the brink again Schiff thinks the spotlight will be back on us after 2012 focused the red dot on the EU. Another thing is that Japan just recently stated they would put their new inflationary policy to use by buying up ESM bonds which bodes better for the EU than the US in the near term. Ultimately though, the US can print away its debt and the EU nations cannot because they have to defer their central banking to the ECB. However, Greece has essentially dropped the Euro for barter currencies and so there is plenty of support for Faber in this regard as well that the Euro may just lose support at the grassroots level. </p><p><br /></p><p>Faber&#039;s next point is that he is anticipating a rough season for the stock markets in 2013 due to deterioration of technicals, which I would like to see specifics on but we didn&#039;t get it in this case. This is however on par with what Lindsey Williams has been saying, and he called both $150 oil and the subsequent $50 oil marks due to his admitted inside information which should be taken with a grain of salt, but his track record is stellar. If stocks do sell off then paper gold and silver would sell off too in order to scrounge up funds to cover the losses. I find this scenario relatively likely and it would support Faber&#039;s gold call here as well regardless of the EU/USD dynamic. It&#039;s also worth noting Faber thinks that this would be a buying opportunity! Any dip in precious metals means silver supplies deplete that much more quickly too.[/QUOTE]</p><p><br /></p>

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