Famed investor and author of the Gloom, Boom & Doom Report Marc Faber warned that central bank policies around the world, including the U.S. Federal Reserve, are monetizing debt -- and unless something changes, we're headed toward global socialism.
In an interview with CNBC on Sunday, Faber especially noted Japan. The country's central bank has been purchasing 100% of the government bonds its treasury is issuing.
He said this kind of governmental asset buying will increase in the immediate future, despite the fact that such policies are doing little to stimulate the economy...
"The central banks aren't interested in what works, they're interested in their own prestige. And they are so deep into it already and it didn't work. They will increase the medicine," said the Swiss investor. "Eventually, they'll buy all the government bonds; they'll buy all the corporate bonds, all the shares outstanding. Afterwards the housing market goes down, they'll buy all the homes and then the government will own everything."
Faber explained that, once this situation occurs - with governments owning all the corporations and all the government bonds - socialism will prevail...
And while on the topic of "socialism," Faber gave his two cents on the 2016 presidential election.
The Swiss fund manager is a fan of Donald Trump, but for one surprising reason...
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"I would vote for [Donald Trump] for the simple reason that I think he's the only one that can really defeat Hillary Clinton," Faber opined, "and I would do anything if I were an American not to get Hillary Clinton as a president, anything."
Fortunately or unfortunately -- depending on your perspective -- as a Swiss national based in Thailand, Faber is not qualified to vote in the upcoming U.S. election.
For more Marc Faber predictions (and whether or not we think they hold water), follow us on Twitter @moneymorning, or like us on Facebook.
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