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Mark Faber: social obligations will lead Western states to default
Published: 05 February, 2010, 12:15
Edited: 13 February, 2010, 19:22
TAGS: Investment, Markets, Economy, Finance
The United States’ top credit rating is at risk, with its triple 'A' status warned it may be downgraded if the economy grows at a slower pace than expected, says ratings agency Moody's.
The US is predicted to have a $1.5 trillion deficit in 2010, which could be a real problem for the country’s seemingly insatiable appetite for borrowing. Outspoken investor and writer Marc Faber doesn’t give America much time before it goes bust.
“Maximum within 10 years time more than 35% of tax revenues will have to be used to pay the interest on the government debt and then you are in trouble – because then there will be not enough money out of the budget to pay for other stuff. I’m convinced the US government will go bankrupt, but not tomorrow. And before they go bankrupt, they’ll print money, and then you get high inflation rates, you have a depression and eventually they’ll go to war.”
The investment guru also says the cracks in the system are starting to spread, naming other countries that could follow suit.
“Portugal, Ireland, Italy, Greece, Spain… I think, eventually, they will all default – because if one defaults, then the next would say why should we pay and will also default. The obligations of Western governments are far too high; they won’t be able to pay.”
Faber, author of “Gloom Boom and Doom Report”, suggests the governments raise the retirement age to 70 years old and cut on social spending, but he believes even that won't be enough.
04.02.2010, 18:27
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05.02.2010, 12:44
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We relish the thought of the collapse...and we'll learn to live in the rubble with honor and humility with the dream of revival of the great Republic.
At one time, long ago, the United States had a republic. Now the Cultural Marxists have taken ownership of the public school systems, the media and of course the Federal government. The Cultural Marxists fund their activities via control of the phony paper money engine known as the Federal Reserve system. As a result, the United States is now a Kleptocracy. A Kleptocracy is a government that takes advantage of governmental corruption to extend the personal wealth and political power of government officials and the ruling class (collectively, kleptocrats), via the embezzlement of state funds at the expense of the wider population, sometimes without even the pretense of honest service. I say...let it come tumbling down such that a true republic can be re-established. Thomas Jefferson, my fellow Virginian said it best ""The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." Time for a bit of refreshment!!
Is it not kind of funny that when such an expert talk about defaulting economies, the only suggestions made are: reducing social benefits. That idiot did not yet figure it out than since 1949 those "bastard" imperialists under the cover of freedom, fear and insecurity has made mankind waste 60 (followed by 12 zeros) trillions $ for her own self-destruction which equal 15 (2008) financial crisis. I suppose that Mr Faber is an American. So, since his country was and still is the initiator and first builder of all WMD, responsable for 65% of that waste, I suggest for him to address his own government and start making petition for the USA to get rid of the few thousands US greedy creeps, who are at the origin of all our troubles...It will get worse before it get better because all main nations' 2010 military budgets have still been increased. Beside, since N-PiPO took office, the procession of former US secretary of state has not stopped in Moscow. Because the last chance for America to complete her global hegemony is to draw Russia in it, even as a full partner. Do you know what means the word CYNICAL for those who have a cash-register instead of brain !!! Sorry Future Russian Generations ...Best Regards...Jean-Claude Meslin PS: Seeing RT's reaction and the number of my similar indeniable virulent comments not published, I have the feeling to be on the right track. If I did not care about what the following generations will inherit, I will have stopped writing, long time ago. If that can make you feel better, know that CNN, BBC, TSR and all french medias are a lot worse than you are...What a shame !!!