Marc Faber explains that when a government goes bust in a democracy, as it's inevitably is going to happen in most Western governments, the majority of people who have no assets or few assets will always find it appealing to collect money from the “fat cats”, for example the so-called 1% in the US who own 42.7% of financial wealth. It should be obvious that if 80% of the population owns just 7% of financial wealth, they will be tempted to transfer at some point in future, part of the wealth of the 5% or 10% richest Americans to the masses that have no savings.
He goes on to explain that we are here today because the people who work hard for a living are now vastly outnumbered by those who vote for a living. This changes the way you would invest. Normally, various asset markets and individual investment opportunities would be analyzed according to their merits, but now wealth taxes must be taken into account.
There's one attachment with this MMC:
- Update on recent trends in the art market by Kenny Schachter,
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