Odds of Global Recession Are 100%: Marc Faber

Published: Thursday, 23 Aug 2012 | 3:46 PM ET

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There’s still a 100 percent chance the world heads into recession, Marc Faber, publisher of “The Gloom, Boom & Doom Report,” told CNBC’s “Closing Bell” on Thursday, echoing a call he made in May.

Bloomberg | Getty Images Marc Faber, managing director of Marc Faber Ltd. and publisher of the Gloom, Boom and Doom Report

When you look at the major economies, Europe, the U.S., China and the emerging markets that are dependent on China for growth, Faber, aka Dr. Doom, only sees weakness.

“Europe is already in recession,” he said. “Germany is still growing very, very slightly, but is likely to go into recession soon.”

Growth in the U.S. is also falling off. “The U.S. economy has decelerated and I don’t see much growth in the next six to 12 months,” Faber said.

There’s also little the Federal Reserve and other policy makers can do to turn the U.S. economy around. “I think that if you look at the injection of liquidity and the intervention by the Federal Reserve and the Treasury with fiscal measures, it has already impoverished the U.S. economy,” he said.

It would take “massive easing, a huge balance sheet expansion,” to boost economic activity in the U.S., according to Faber. (Read More: More Easing Not Needed If Growth Holds Up: Fed's Bullard.)

Faber also doesn’t expect much change in the U.S.’s finances regardless of who wins the election in November. “The deficit is $1.3 trillion and, in my view, will go up,” he cautioned. (Read More: The Biggest Holders of US Government Debt.)

Even corporate profits, the lone bright spot, look to be at risk. “The corporate sector has recovered remarkably since the trough in earnings in 2009 and we are at record high earnings,” Faber said, but added, “Corporate profits will disappoint over the next 12 to 18 months.”