Faber: ‘Massive Wealth Destruction’ Coming, Well-to-Do ‘May Lose 50%’

Marc Faber

Tuesday, 27 Mar 2012 01:12 PM

By Newsmax Wires

The critical question over the next decade isn’t “where will my returns be highest?” but “where will I lose the least money?”

That, according to economist and investor Marc Faber, is the scenario facing investors today.

As the author of the Gloom, Boom, and Doom Report, Marc Faber is a well-known contrarian, earning celebrity status because of his ominous predictions.

So his pessimism during a recent appearance on CNBC wasn’t surprising for a man whose nickname is “Doctor Doom.” What was surprising was the level of “wealth destruction” he sees in the not-too-distant future.

Faber stated, “I think somewhere down the line we will have a massive wealth destruction. That usually happens either through very high inflation or through social unrest or through war or credit-market collapse.”

“I would say that well-to-do people may lose up to 50 percent of their total wealth.”

Faber points out that this bleak outlook for the United States has been caused by Federal Reserve Chairman Ben Bernanke and the Federal Reserve’s continuous printing of new money.

He says that the bailout and money printing will not create any long-lasting wealth or create healthy growth, and that the collapse will come on Bernanke’s watch.

While Faber’s prognostications are worrisome (especially for those who fall into the “well-to-do” category), they are hardly as alarming as the scenario laid out by another economist.

Without appearing on CNBC, earning celebrity status, or being known by a scary nickname, Robert Wiedemer did what Marc Faber couldn’t: He accurately predicted the economic collapse that almost sunk the United States.

In 2006, Wiedemer and a team of economists foresaw the coming collapse of the U.S. housing market, equity markets, private debt, and consumer spending, and published their findings in the book America’s Bubble Economy.

But Wiedemer’s outlook for the U.S. economy today makes “Doctor Doom” sound like Mr. Rogers.

Where Faber sees a 50 percent loss of wealth for some, Wiedemer sees much more widespread economic destruction.

In a recent interview for his newest book Aftershock, Wiedemer says, “The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012.”

Newsmax Editor’s Note: See the disturbing interview with Wiedemer.and the eerie chart that exposes the unthinkable. Click on this link:

http://w3.newsmax.com/a/aftershockb/video47.cfm?promo_code=E969-1

When the host questioned such wild claims, Wiedemer unapologetically displayed shocking charts backing up his allegations, and then ended his argument with, “You see, the medicine will become the poison.”

The interview has become a wake-up call for those unprepared (or unwilling) to acknowledge an ugly truth: The country’s financial “rescue” devised in Washington has failed miserably.

The blame lies squarely on those whose job it was to avoid the exact situation we find ourselves in, including Bernanke and former Federal Reserve Chairman Alan Greenspan, tasked with preventing financial meltdowns and keeping the nation’s economy strong through monetary and credit policies.

At one point, Wiedemer even calls out Bernanke, saying that his “money from heaven will be the path to hell.”

But it’s not just the grim predictions that are causing the sensation; rather, it’s the comprehensive blueprint for economic survival that’s really commanding global attention.

The interview offers realistic, step-by-step solutions that the average hard-working American can easily follow.

The overwhelming amount of feedback to publicize the interview, initially screened for a private audience, came with consequences as various online networks repeatedly shut it down and affiliates refused to house the content.

Bernanke and Greenspan were not about to support Wiedemer publicly, nor were the mainstream media.

“People were sitting up and taking notice, and they begged us to make the interview public so they could easily share it,” said Newsmax Financial Publisher Aaron DeHoog, “but unfortunately, it kept getting pulled.”

“Our real concern,” DeHoog added, “is what if only half of Faber and Wiedemer’s predictions come true?

That’s a scary thought for sure. But we want the average American to be prepared, and that is why we will continue to push this video to as many outlets as we can. We want the word to spread.”

Newsmax Editor’s Note: For a limited time, Newsmax is showing the Wiedemer interview and supplying viewers with copies of the new, updated Aftershock book including the final, unpublished chapter. Go here to view it now.