October 22, 2012
Debt burden of the U.S. and other Western economies will continue to grow and this will lead to a "colossal mess" within 5 to 10 years, warns Marc Faber, author of the report Gloom, Boom and Doom, said on CNBC.
"I think governments will try to maintain it as long as possible and this means that we are not facing a" fiscal gap "and to" Grand Canyon fiscal, "said Faber.
According to Faber political systems in western countries will allow the debt burden continues to grow. The scenario in which deficits are never repaid, meaning that one day the system will inevitably collapse.
"Or to be undertaken major reforms and things will happen as usual, by revolution," he said. "The U.S. is closer to such an Revolution and Europe."
"I think it will happen within 5 to 10 years - then chaos will be a colossal and pervasive," says Faber.
"I think that the annual deficit of the United States, regardless of who wins the presidential election, will remain above $ 1 trillion for the foreseeable future," he said.
Bureaucracy in the U.S. and Europe is too heavy and creates an additional burden on the economy, Faber warned.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.