Dr Doom’s new painting
When Greek astronomer Aristarchos explained in the 3rd century BC that earth revolves around the sun he was laughed at. When Peter Schiff warned in 2006 about an impending economic bust he was heckled on television by other economists. When Nouriel Roubini said in 2005 that speculation in the housing market would sink the economy he was labeled as “Dr Doom,” sharing the title with Marc Faber, who predicted the 1987 stock exchange crash and almost every other bear and bull market since. Today, at a presentation in Japan, Faber painted another picture of the economy, displayed excellently in The Times.
The Dr Dooms’ predictions: Roubini predicted in 2009 that the recession will last a few years; Faber predicts “a dirty war” and that the US will go bankrupt. Schiff has long predicted the eventual fall of the dollar.
The tallest trees
The Roman Empire did not fall in a battle of war. There was no single big clash of arms that drove it to its knees. It was corroded from the inside. At one stage, the wealthy held so much gold coins that there was not enough currency to keep services to the public going. By keeping the money to themselves the wealthy had simply run the nation into the ground.
When Ptolemy claimed in the 2nd century BC that earth was the center of the universe most people believed him. When British Prime Minister Gordon Brown claimed that pouring the citizens money into the banking system would save the world economy, other political leaders followed him blindly.