Colossal Mess In the West: US Debt
Mark Faber, the Swiss Investor, states that the debit burden in the US will grow for 5 - 10 years and the fiscal cliff will become a fiscal Grand Canyon. He believes that bureaucracies must be reduced by 50% or more, the S & P will fall by 20%, there are no corporate earnings and no industrial growth.
He believes that the Fed and increased regulations will continue to kill the economy.
Faber argued that the political systems in place in the West would allow the debt burden to continue to expand. Under such a scenario of never-ending deficits, the Western world would rack up huge deficits.
He feels that change can come by peaceful reform or revolution but the US is closer to revolution.
What do you think? Is he right? Is the economy important in this election? Has it been given the attention it deserves?