Marc Faber: 'We Are Doomed'
by Henry Blodget
Recently by Marc Faber: The Frame of Mind of American Economic Policymakers
The U.S. is headed for a major debt crisis, Marc Faber says.
It won't hit us this year or next year. But within 5—10 years, the United States will be forced to quietly default on its debt, most likely by printing money and destroying the value of the currency.
The main problem comes down to two things: 1) ballooning debts and 2) future interest costs.
As these charts show, in the past decade, the U.S. government's total debt and liabilities have gone through the roof, especially when Fannie, Freddie, Medicare, and Social Security are taken into account. This trend is unsustainable, and it will correct itself only through a rapid acceleration of economic growth and tax revenues, a new-found financial discipline, or a crisis — or a combination of all three.
January 14, 2010
Copyright © 2009 Business Insider