Dr Faber is predicting a 1987-type stock market crash this year – only it will be worse.
He told CNBC that the pain in the internet and biotechnology sectors was just getting started, and the market was beginning to realise that US Federal Reserve was a "clueless organisation".
"I think it's very likely that we're seeing, in the next 12 months, an '87-type of crash," Dr Faber told CNBC. "And I suspect it will be even worse."
Dr Faber's prediction comes after another high profile investor, Jeremy Grantham, said last month the ''next bust will be unlike any other''.
The US technology-heavy Nasdaq plummeted by 3.1 per cent on Thursday night (US time), its biggest one-day drop since November 2011. A sharp sell-off in biotechnology and momentum names, including Gilead Sciences and TripAdvisor weighed on the market, fuelling fears among inventors of a broader pullback.
He said ridiculous stock valuations were not the crash catalysts, saying the Federal Reserve was also to blame.
After the Fed began to taper its massive bond buying program, minutes from its last meeting in March indicated that it may not be as eager to end its easy money policy.
"I believe that the market is slowly waking up to the fact that the Federal Reserve is a clueless organisation," Dr Faber said.
"They have no idea what they're doing. And so the confidence level of investors is diminishing, in my view.
"This year, for sure - maybe from a higher diving board - the S&P will drop 20 per cent," Dr Faber said, before correcting himself.
Mr Grantham said the bust would be particularly painful because "the Fed and other central banks around the world have taken on all this leverage that was out there and put it on their balance sheets.
"We have never had this before."
Is the US or the World Coming to an End?
It will be one or the other
It will be one or the other
2014 is shaping up as a year of reckoning for the United States.
Two pressures are building on the US dollar. One pressure comes from the Federal Reserve’s declining ability to rig the price of gold as Western gold supplies shrivel and market knowledge of the Fed’s illegal price rigging spreads. The evidence of massive amounts of naked shorts being dumped into the paper gold futures market at times of day when trading is thin is unequivocal. It has become obvious that the price of gold is being rigged in the futures market in order to protect the dollar’s value from QE.
The other pressure arises from the Obama regime’s foolish threats of sanctions on Russia. Other countries are no longer willing to tolerate Washington’s abuse of the world dollar standard. Washington uses the dollar-based international payments system to inflict damage on the economies of countries that resist Washington’s political hegemony.
Russia and China have had enough. As I have reported and as Peter Koenig reports herehttp://www.informationclearinghouse.info/article38165.htmRussia and China are disconnecting their international trade from the dollar. Henceforth, Russia will conduct its trade, including the sale of oil and natural gas to Europe, in rubles and in the currencies of its BRICS partners.
This means a big drop in the demand for US dollars and a corresponding drop in the dollar’s exchange value.
As John Williams (shadowstats.com) has made clear, the US economy has not recovered from the downturn in 2008 and has weakened further. The vast majority of the US population is hard pressed from the lack of income growth for years. As the US is now an import-dependent economy, a drop in the dollar’s value will raise US prices and push living standards lower.
All evidence points to US economic failure in 2014, and that is the conclusion of John Williams’ April 9 report.
Russian news reports have identified US mercenaries among the Kiev force that has been sent to put down the separatists in eastern Ukraine. A member of the right-wing, neo-Nazi Fatherland Party in the Kiev parliament has called for shooting the protesters dead.
Violence against the protesters is likely to bring in the Russian Army and result in the return to Russia of its former territories in Eastern Ukraine that were attached to Ukraine by the Soviet Communist Party.
With Washington out on a limb issuing threats hand over fist, Washington is pushing Europe into two highly undesirable confrontations. Europeans do not want a war with Russia over Washington’s coup in Kiev, and Europeans understand that any real sanctions on Russia, if observed, would do far more damage to Europeans. Within the EU, growing economic inequality among the countries, high unemployment, and stringent economic austerity imposed on poorer members have produced enormous strains. Europeans are in no mood to bear the brunt of a Washington-orchestrated conflict with Russia. While Washington presents Europe with war and sacrifice, Russia and China offer trade and friendship. Washington will do its best to keep European politicians bought-and-paid-for and in line with Washington’s policies, but the downside for Europe of going along with Washington is now much larger.
Across many fronts, Washington is emerging in the world’s eye as duplicitous, untrustworthy, and totally corrupt. A Securities and Exchange Commission prosecuting attorney, James Kidney used the occasion of his retirement to reveal that higher ups had squelched his prosecutions of Goldman Sachs and other “banks too big to fail,” because his SEC bosses were not focused on justice but “on getting high-paying jobs after their government service” by protecting the banks from prosecution for their illegal actions.http://www.counterpunch.org/2014/04/09/65578/
The US Agency for International Development has been caught trying to use social media to overthrow the government of Cuba. http://rt.com/news/cuba-usaid-senate-zunzuneo-241/
This audacious recklessness comes on top of Washington’s overthrow of the Ukrainian government, the NSA spying scandal, Seymour Hersh’s investigative report that the Sarin gas attack in Syria was a false flag event arranged by NATO member Turkey in order to justify a US military attack on Syria, Washington’s forcing down Bolivian President Evo Morales’ presidential plane to be searched, Saddam Hussein’s “weapons of mass destruction,” the misuse of the Libyan no-fly resolution for military attack, and on and on. Essentially, Washington has so badly damaged other countries’ confidence in the judgment and integrity of the US government that the world has lost its belief in US leadership. Washington is reduced to threats and bribes and increasingly presents as a bully.
One of two things is likely: Either the US dollar will be abandoned and collapse in value, thus ending Washington’s superpower status and Washington’s threat to world peace, or Washington will lead its puppets into military conflict with Russia and China. The outcome of such a war would be far more devastating than the collapse of the US dollar.
Hailed as a global first, a Jewish synagogue and an Episcopal church are co-locating their new worship facilities on a plot of land with a Mosque. They call it the “Tri-Faith Initiative,” and the project has become the darling of the progressive wings of Christianity and Judaism.
The Jewish and Christian participants’ motivations are easily discerned by reading their rather facile statementsregarding the project. Standard left-progressive boilerplate about “inclusiveness and social justice” abounds.
Like the Episcopalians, Reform Jews routinely place progressive politics and social justice above doctrine, making them ideal partners for a project like this. From their statements, one gets the impression that this sort of interfaith cooperation is naughtily intoxicating.
The particular form of Islam to be practiced at this new Tri-Faith campus has yet to be revealed, as well as the name of the Imam, or even the sect of Islam from which the Imam will be drawn.
One thing is clear however, the mosque – and those behind it – have distinct ties to groups previously named as“unindicted co-conspirators” in the largest terrorist funding investigation in our nation’s history.
The first of these, the Islamic Society of North America (ISNA) is a well-documented purveyor of Islamism, preaching the supremacy of Islam over not only all other religions, but all nations as well.
Their fellow-traveling co-conspirator, the Council on American-Islamic Relations (CAIR) has similarly well documented ties to the Muslim Brotherhood and other radical Islamic supremacist organizations.
Dr. Mark Christian, the Executive Director of the Global Faith Institute (also based in Omaha) has called for the Tri-Faith Initiative to sever ties and disavow connections with all terror-linked Muslim groups.
He raised this issue with the Tri-Faith leadership and has had his concerns summarily dismissed. Perhaps it is only a coincidence, but intimidation efforts toward Dr. Christian subsequently surfaced on social media, coming from CAIR and other similarly freedom-phobic groups.
Dr. Christian is an Egyptian-born convert to Christianity from Islam. His family’s ties to the leadership of the Muslim Brotherhood go back to its founding, and his conversion to Christianity has earned him a fatwa of death, should he return to his home country.
Understanding the danger as few others can, Dr. Christian is hosting a pair of conferences in Omaha and Lincoln on the influence of the Muslim Brotherhood in the heartland, at which the lead presenter will be Robert Spencer, founder of Jihad Watch and favored target of radical Muslims everywhere.
Having already ignored Dr. Christian’s call to disavow CAIR and ISNA involvement, the occasion of Mr. Spencer’s arrival has led local media to further bury their heads in the sand.
In one recent instance, a large radio station has canceled a previously scheduled interview with Dr. Christian and Mr. Spencer, claiming to have done so “on advice of legal counsel.”
This is the station that features Limbaugh, Hannity and Levin as the mainstays of their weekday programming. The largest radio station in the state has expressed interest in speaking with Mr. Spencer, but only if the Tri-Faith Initiative remains undiscussed.
CAIR has been tweeting and speaking against the planned conferences, labeling them “Islamophobic” despite having made no effort to determine their content.
In CAIR’s eyes, the presence of Robert Spencer seems reason enough to launch an attack.
The primary weapon employed by CAIR and ISNA is pre-emption by intimidation. The “co-conspirators” level charges of Islamophobia at the first sign of opposition. They threaten lawsuits and boycotts, doing a 21st-century version of shouting down their opposition.
Attempts to address the concerns raised over the clear links between CAIR, ISNA and the proposed Mosque, have been met with stony silence from the Jewish and Christian legs of this Tri-Faith stool.
Communist officials in China have denied waging a “demolition campaign” against churches in the country’s most Christian regions, after reportedly ordering a dozen to be destroyed.
The churches - in the eastern province of Zhejiang - are currently facing demolition or having their crosses removed, activists claim. Other churches are said to have been ordered to make themselves “less conspicuous” by turning their lights off at night.
Local preachers accuse Party officials in Zhejiang, a wealthy coastal province, of “gross interference” in Church affairs and have urged them to abandon what they believe is an orchestrated campaign.
Last week, Christians flocked to the Sanjiang church in Wenzhou - a rich port city known as the “Jerusalem of the East” because of its large Christian community - after its demolition was announced.
Feng Zhili, the chairman of Zhejiang’s ethnic and religious affairs committee, said Christianity’s growth had been “too excessive and too haphazard”.
Religious beliefs are officially discouraged, particularly among the Communist Party’s more than 85 million members.
Xi Jinping, the president, has been quoted as saying that China is “losing its moral compass” and thinks “traditional” faiths such as Buddhism, Confucianism and Taoism could “help fill a void that has allowed corruption to flourish,” Reuters reported last year, citing sources close to the leadership.
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