Marc Faber: How to Survive a Greek Economic Collapse

Economic Collapse 2015Instead of focusing on a possible interest rate hike from the Federal Reserve, investors should be worried about a eurozone economic collapse in 2015.

At least that is according to Marc Faber, the editor of the popular Doom, Boom, and Gloom Report. During an interview on Monday, June 29 on Bloomberg Television, the ‘permabear’ commentator contended that the situation in Greece is beyond repair. Even worse, the consequences of a Greek debt default could be severe.

“I would think that they [Greece and its creditors] would come to sort of an agreement last minute. However, Greece would not get anything positive because Greece is basically bankrupt.”

How can investors prosper in this environment? Faber stressed those with cash on the sidelines were the best positioned to survive. However, when pushed a little further, he also recommended owning hard assets like gold and silver.

Also Read: Economic Collapse Headed for U.S. in 2015

“I still like precious metals. They may still come under some pressure. Who knows? The world is addicted to debt. The debt burden is so high, there won’t be any substantial economic growth.”

Beyond trouble in Europe, the turmoil in Greece could have important implications for U.S. investors. The Federal Reserve is widely expected to lift interest rates later this year. However, Faber believes the U.S. economy is much worse than central bankers believe and a Greek debt default could put any rate increases on hold.

“I personally doubt she (Ms. Yellen) would do it this year, they’ll find an excuse not to do it. I believe that U.S. economy will badly disappoint within six months.”