Marc Faber, the thoughts of the QE3 (QE4 QE5, and, etc) Will Take Place

Marc Faber gave a stellar 30 + minute interview McAlvany Weekly comments.  Read the text here and listen to it here.

Many interesting points of the (unique), and to make one, that Faber stuck out was his claim that 80% of the budget of the United States is, in principle, the untouchable:

, David: What measures, if any, the Fed and Treasury employ to defend on the bond market is so important to our way of life of our deficits and America projects?

Marc: I think that they do not necessarily want to support the bond market, since the issuance of the debt, they are almost part of the debt money.  I have read the reports of the Treasury in 2010, that is to say, Tim Geithner, f. United States public debt increased by more than 2 trillion dollars during the period in question.  I think mathematically, the deficit may be down, because 80% of the budget is compulsory expenditure, in other words, you cannot cut them.  Legally, they must meet.

The remaining 20% to a slightly reduced, but not so much because then services to Collapse.  I think the Us deficit remains approximately 1 ½ trillion dollars, in so far as the eye can see, and maybe even go 2 or 2 ½ trillion dollar debt interest costs, and then to go up.  So, actually, in my view, unless the tax is increased significantly and the expenditure is cut significantly, by setting a bit here, a little there, never again the budget balanced, and that then require ajoissaQE-III, and IV QE QE V.  Taxes will not be raised sharply, because if you increase the very significantly, we go directly back into a recession.

It is assumed that it all together for us to best Faber voice: "Mr. Bernanke is money printer!"

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