Faber On Europe's Dilemma And China's Hard Landing

Marc Faber brought his typical sense of reality and truthfulness to CNBC's Squawk Box this morning and in doing so managed to stop Jeremy Siegel saying long-term-buy-and-hold for more than 7 minutes. Siegel represented the 'new-hopers' with his insight that if the ECB would just guarantee all euro-wide deposits then all would be well in the world. Faber comes over-the-top in his gentle European accent reminding the academic that "it is hard to guarantee something you have no control over". Faber then proceeds to state his view that Europe is in a deepening recession and more importantly that China is growing at a far lower pace than official statistics would infer. Reminding viewers that about 40% of US corporate profits are from outside the US and the 'vicious spiral chain reaction' from slowing demand in China for industrial commodities has lagged effects on producing countries and then aggregate demand globally, Faber fears broad-based risk sell-offs but remains notably less sanguine on US Treasuries.