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Robert Winner

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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?

Topics: economics
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    Oct 23 2012: He is right.

    The last 2 presidents and congresses have saddled the U.S. in a big way. But the hockey stick started in 1971 when Nixon took us off of the gold standard and the rest of the countries went off of Bretton Wood. This has financed more and more growth at the Federal level.

    Government was shrunk by 50% under Coolidge and Harding. I doubt that could be done now but you could sure do a lot. Getting rid of some these agencies would be a 2 for 1 deal in that they would free up regulations and reduce government cost. Also the many subsidies could be gotten rid of with little effect.

    The economy probably has not gotten the attention it deserves because O sure doesn't want to talk about it and many of the voters are asleep.

    On the other hand if the free stuff is taken away too quickly there will be riots, not a maybe.

    To me the imperative is that the voters be educated. It can be done.

    If this is not resolved the world will fall as the U.S. will take many countries with it.
    • Oct 24 2012: I'm no fan of Nixon but the gold standard had been done away with quite a bit before his time.
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        Oct 24 2012: What the hell are you talking about?
        • Oct 24 2012: I'm talking about the fact that the United States went off the gold standard in 1933.
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        Oct 24 2012: That is irrelevant.
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          Oct 24 2012: John, You need to read the Nixon Shock. The Nixon Shock was a series of economic measures taken by U.S. President Richard Nixon in 1971 including unilaterally cancelling the direct convertibility of the United States dollar to gold that essentially ended the existing Bretton Woods system of international financial exchange.

          Pat, am I on the right track here. You do make a old man do a lot of research before I join the fight.

          Bob.
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          Oct 24 2012: is this Richard Nion which motioned by prisident obama in the third debate ?


          that is a good ads

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