Marc Faber | U.S. Debt Crisis Coming

Marc Faber: U.S. Debt Crisis Coming

Although in the short term we probably won't be going through a debt crisis in the United States, according to Marc Faber, sometime over the next 10 years it will definitely hit, and when it does hit, it'll hit hard.

According to Faber, the U.S. will be forced to default on its debt, more than likely from ramping up the money printing presses even more, which will essentially destroy what's left of the value of the U.S. currency.

The two major challenges are the surging debt load of the United states government, and the costs of interest which skyrocket in the years ahead.

Anyone who understands the debt that has been taken on by the U.S. government, knows that it is growing at levels which can't be sustained, and will have to go through a time of correcting itself, where explosive economic growth, huge increases in taxes or getting the right person in office to start dismantling the horrid social programs the government refuses to deal with as far as not being able to afford them.

Concerning the costs of interest, once the interest rates start going up again, there's no doubt the cost of interest will increase as well.

Faber believes that in about five years the cost of government programs in relationship to costs of interest will rise to about 35 percent of tax revenue, a huge leap from the 12 percent experienced today. Once that happens, there will only be two things that can be done, a group of bold politicians willing to make the necessary cuts (laughter in the background), or a printing of money at levels unprecedented in history.

Marc Faber: U.S. Debt Crisis Coming