Marc Faber Banned from CNBC and Fox, Ousted from Sprott Board for Racial Comments: Is Faber a Racist

Marc Faber, author of the Doom, Boom, and Gloom report and my favorite investment book has been banned from CNBC and Fox Business News for racial comments. He will also be removed from various boards of directors. Does the punishment fit the Crime? Is Faber a racist?

Swiss investor Marc Faber has doubled down on racially charged remarks he made in an October newsletter, suggesting that the U.S. would be in a qualitatively different state if it had been colonized by black people instead of whites.“I am not saying it would be better,” Faber told MarketWatch in an interview on Tuesday. “I am just saying that progress would not have been the same.”

Asked why “progress” would be worse, Faber had this to say: “Europeans brought science to America. They brought technical skills.…I am not sure the Africans would have done that.”

Faber’s remarks to MarketWatch came after the prominent investor early Tuesday sparked a backlash from Wall Street and its participants related to similar statements that surfaced in his popular newsletter The Gloom, Boom & Doom Report, dated Oct. 3.

In the newsletter, he wrote: “And thank God white people populated America, and not the blacks. Otherwise, the US would look like Zimbabwe, which it might look like one day anyway, but at least America enjoyed 200 years in the economic and political sun under white majority.”

A frequent commentator on CNBC, Bloomberg and on this website, Faber said he expected to face repercussions from his remarks, saying that if “stating some historical facts makes me a racist, then I suppose that I am a racist,” reiterating statements he offered to other news outlets via email.

CNBC and Fox Business Network said Tuesday that they will no longer book him on their shows.Sprott released this statement, attributed to CEO Peter Grosskopf: “The recent comments by Dr. Faber are deeply disappointing and are completely contradictory with the views of Sprott and its employees.”

Faber said he was more concerned with the state of free speech in the world—and, in particular, in America. “If you have to live in a society where you cannot express your views and your views are immediately condemned without further analysis and analysis of the context in which [they’re written]—if you can’t live with that, then it is a sad state of where freedom of the press and freedom of expression have come.”

Faber told MarketWatch that “Africans will always use the excuse of [oppression] to explain where they are economically, saying that it is ‘all the fault of the colonists.’ ”“They would be much better,” he continued, “under a system of Western colonialism.”

Amazingly Insensitive and Inaccurate

I cannot and do not condone statements like "Thank God white people populated America."

Faber's statements were amazingly insensitive at best, racist at worst. Judgement is in the eyes of the beholder. He was given a chance to clarify his statements. Instead, he doubled down and it will cost him dearly. Retribution was swift.

I ban people from my website for making racial comments.

Second Chance

When given a second chance MarketWatch interview, I propose Marc Faber should have replied along these lines:

"I apologize for my inaccurate and insensitive statements. The US is great because it was founded by an amazing group of free-market capitalists and right-minded educated intellectuals. Race was not a factor."

What Made the US Great?

The Constitution's Bill of Rights is what makes the US great. There is nothing else like it in the world. It's a unique constitution put together by a unique set of educated lawyers and other scholars.

The First Amendment grants freedom of speech and freedom of the press.

That's what enables Faber to say what he did. And that's a good thing, whether you agree with him or not! China imprisons or kills people for saying something the state disagrees with. Numerous countries in Europe would fine Faber for such remarks.

The First Amendment prohibits state-sponsored religion. Many Republicans who allegedly want a strict constitution, ought to take a closer look. School prayer does not fit in.

Democrats might wish to consider the Second Amendment.

Everyone should appreciate the right to be secure in their home. That's the Fourth Amendment.

The Sixth Amendment grants a speedy trial.

Race has nothing to do with the brilliance of the US constitution other than the fact it happened to be drafted by whites. One can accurately state that at that time, there were not as many educated blacks as whites, but it was education level (arguably coupled with sheer luck), not race, that made the difference.

I doubt that any group of people (white, black, red, yellow, or purple) other than that amazing set of individuals who just happened to be in the right place at the right time could have drafted the Constitution of the United States.

The Bill of Rights is what made America great, not poltical demagogues demanding school prayer while supporting drone policy that allows the US to drop white phosphorous bombs and target individuals with zero regards for "collateral damage".

Interestingly, this subject came up just the other day, in regards to China. Saxo Bank CIO and Chief economist Steen Jakobsen declared a paradigm shift is underway and "King Dollar is Dead".

I agree with the paradigm shift theory and usually agree with Jakobsen in general. However, I disagree with Jakobsen on King Dollar. This was my rationale:

Why Dollar is King

  • The dollar is king because the US has open capital markets, property rights, and the world's biggest bond markets.
  • The US also has a Bill of Rights granting freedom of speech and protection from unwarranted searches. China imprisons people for speaking their mind.
  • China is a long way from competing with the US on those important issues. In addition, China repeatedly resorts to capital controls to stop monetary flight.

China will not supplant the US for at least two decades and may not ever.

After clicking on the above link, do yourself a second favor and go read the Bill of Rights.

Mike "Mish" Shedlock

When I read his report this month I thought he had gone to far and could have said what he meant in a much less objectionable way or not at all. This also came close on the heels of Jim Grant having to do a 180 degree about turn on his Dalio piece, what I don't like however is both these guys write expensive private letters not availiable to the general unwashed public, and both of these guys were quickly shut down with no discussion of the the subject matter being put forward. It is not a good state of affairs when even in a very private newsletter the topic of discussion is policed so heavily.

E pur si muove.

Racism is not pointing out differences or differing abilities/skills etc. It is treating people differently because of those differences. I might say I like Mercedes better than a Ford. People might agree or disagree, but on the road I treat all drivers equally (until someone cuts me off LOL)

No one objects if I say, Ashkenazi Jews as a group are probably the most intelligent people, or Blacks are very athletic. (Do you watch sports much?) One might say that Asians are very diligent and no one objects. But say anything negative about an identifiable group and the ad hominem attack of Racist is launched which shuts down honest discussions on how we can improve the problems of the world. Ad hominem attacks have gradually crept into our educated, and yet in many ways, uneducated society.

@Anotherguy - I do not totally disagree with your assessment of different races having varying skills but we should be sure we are not just stereotyping an entire race. Not all Jews are intelligent, although they have a large number of Nobel winners and I know not all blacks are athletic. I can say that not all whites are intelligent or would create a free and well run society. Although Britain colonized what later became the United States and we used their system of law, there have been other high civilizations which were not based on Northern Europe or whites. Ancient Egypt had higher technology than any empire to date, Greece had Democracy, Italy had a Republic thousands of years ago and it expanded into the Roman Empire. All civilizations rise and fall and the US has not been around long, comparatively speaking to these. My guess is our decline will be both sooner and quicker than the ones mentioned and it will not be due to blacks or any single race. It will be due to complacency and all races living beyond their means and becoming ignorant of what made our country great (freedom).

Dear Mish. This has been studied to death. Blacks different by a minus 2 standard deviation as a group with respect to IQ. Not a pleasant fact for some but a fact. You don't make any points by running head first into reality. Your blog has reached its zenith a few years back. I don't see you going any further up by courting our ruling class by toadying up to them.

Can you cite the studies of general IQ differences of blacks? I would be interested to see the pool any study used. I have a hard time believing it. I am a medical scientist (with expertise in Toxicology R&D) so need actual data.

Marc is correct in stating that America would not have been so successful if colonisaed

Marc is correct in stating that America would not have been so successful if colonised by the African peoples, but where he slipped up is referring to these African peoples as 'the blacks'. It is not their colour or race that would have prevented the Africans from starting America out on the right foot, but rather it would have been the cultural difference. This is brilliantly and accurately explained in Jarred Diamond's book, Guns, Germs and Steel. And as Diamond explains, this cultural difference is nothing to do with intelligence or race.

Marc Faber expressed an opinion. Not that it matters one bit, I agree with him 100%. Anyone with a different opinion and willing to argue with him should be free to do so. Better still if the focus stays on the merit or demerit of his arguments not on the man who expressed his opinions. Sounds simple but unfortunately respect for free speech is not what it used to be. Intolerance is on the rise.

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