Marc Faber: We are doomed, U.S. debt crisis in next 5 to 10 years

The United States debt is more than $12 trillion and financial guru Marc Faber believes the country will see the consequences of that within the next five to ten years through defaulting on their debt, most likely by printing large quantities of money.

On Wednesday, economic forecaster and “Mr. Doom” himself, Marc Faber, spoke to "Tech Ticker" about the state of the current economic downturn within the United States and, in original fashion, stated that he doesn’t see much hope for the US economy because of its major debt crisis it will face, according to Yahoo! Finance. Faber, publisher of Gloom Boom Doom, said the US won’t see a debt crisis next year or the year after but within the next five to ten years. Faber explained that every financial crisis there’s a sovereign debt problem because countries borrowed large amounts of money during the boom from other nations and then when there is a downturn, such as the current one, they have a hard time to back their lenders. Most countries that will blow up will be the “PIIGS,” which are Portugal, Ireland, Italy, Greece and Spain and he expects that at least one of them will default in the next couple of years. If that does truly happen then it will be the death of the Euro. According to the Business Insider, when it comes to the US, Faber believes the two main problems when it comes to destroying the US Dollar are the ballooning debt and the future interest costs, which amounts to 12 per cent of the government’s tax revenue but he expects it to largely increase to 35 per cent. The only solutions the government has, according to Faber, will be to cut spending, which he finds unlikely to happen, or print money at astronomical levels. Digital Journal reported on Thursday that Jim Rogers, Chairman of Rogers Holdings, strongly criticized Jim Chanos’ prediction that the Chinese economy will collapse. Rogers said a guy like Chanos “couldn’t spell China 10 years ago and now they’re experts.” GuruFocus reports that Faber does believe the Chinese economy will collapse because of its excessive credit but it won’t be for quite some time. “It is very difficult to pinpoint a day when China will implode; I don’t think it will happen right away.”