The Chinese economy is due for a major cooling and may even tank by year’s end, says investment guru Marc Faber.

The Chinese property market, often said to be in a bubble, is due for a pop, just like overall stock prices, Faber says.

“The market is telling you that something is not quite right,” says Faber, the publisher of the Gloom, Boom & Doom report.

“The Chinese economy is going to slow down regardless,” he tells Bloomberg. “It is more likely that we will even have a crash sometime in the next nine to 12 months.”

The nation’s economy grew 11.9 percent in the first quarter, the fastest pace in almost three years. The government projects gross domestic product growth for the year of about 8 percent.

Read More: – By Forrest Jones, Moneynews

Current economic policies are not sustainable and the world faces doom because “the governments are taking over”, said Marc Faber, editor & publisher of The Gloom, Boom & Doom Report.

“They will all bankrupt us and expropriate us, but it may not happen tomorrow. They’ll give us something to play with, until the whole system breaks down…they’ll just print money and print more money,” he said on CNBC Thursday.

“What I object to the current government intervention in so-called ’solving the crisis’, (is that) they haven’t solved anything. They’ve just postponed it.”

Faber warned that the “ultimate armageddon” would be much worse the next time around, as “governments will go bust”, which would lead them to print more money.

Read More: – By CNBC.com

Marc Faber, publisher of “The Gloom, Boom & Doom Report,” sees a rebound in the euro to 1.40 before further weakness sets in.

“In general, the euro will weaken further against the U.S. dollar — not that there is anything good about the U.S. dollar — it is just that at the moment, it is less bad,” he said.

“The dollar should correct after recent outperformance,” Faber told CNBC.

However, Faber doesn’t think that the dollar will sink to a new low.

Read More: – By Julie Crawshaw, Moneynews

Stock prices will finish 2010 somewhat lower than where they began this year, says investment guru Marc Faber.

Faber told investors to buy stocks in March of last year, right when the Standard & Poor’s 500 Index reached its lowest level since 1996.

Since then, the S&P 500 rallied more than 60 percent and the Dow Jones Industrial Average gained 59 percent thanks to government stimulus programs.

Now it’s time to sell, Faber says.

“I would look at the market to close probably a bit lower than it started the year in 2010,” says Faber, according to Bloomberg.

“Equally, I don’t think we have a huge downside risk. If the Dow and the S&P dropped, say 15 to 20 percent, in other words the S&P towards 900, I think there would be more stimulus and more quantitative easing.”

Read More: – By Forrest Jones, Moneynews

At a conference in Moscow, Marc Faber laid out the crisis that he sees coming in the next 10 years: Interest on U.S. debt will crush other spending, then inflation and depression will take hold and eventually lead to war.

“Maximum, within 10 years time more than 35 percent of tax revenues will have to be used to pay the interest on the government’s debt, and then you’re in trouble, because then there is not enough money out of the budget to pay for other stuff,” Faber said.

“I am convinced that the U.S. government will go bankrupt, but not tomorrow, and before they go bankrupt they’ll print money, and then you get very high inflation rate, then you get depression with high inflation and eventually they’ll go to war.”

Social obligations will cause Western countries to default, in Faber’s view. “Portugal, Ireland, Italy, Greece, Spain — I think eventually they’ll all default,” he says.

Read More: – By Julie Crawshaw, Moneynews

Gloom, Boom and Doom editor Marc Faber says big banks are the freakish offspring of easy Fed money.

“The baleful reality is that big banks, the freakish offspring of the Fed’s easy money, are dangerous institutions, deeply embedded in a bull market culture of entitlement and greed,” Faber says.

During the recent quarter, the preponderance of Goldman Sachs‘ revenues came from trading in bonds, currencies and commodities, Faber tells the Financial Times.

“But these profits were no evidence of Mr Market doing God’s work, greasing the wheels of commerce and trade by facilitating productive financial transactions,” Faber says.

Read More: – By Julie Cranshaw, Moneynews