Faber: U.S. must cut spending by 50% or economy will collapse

Western governments must immediately cut spending in half or face catastrophic economic collapse, economic analyst Marc Faber tells CBNC.

The United States and other Western nations are piling up debt at a deadly pace and barring an immediate halt they face violent turbulence in five to ten years, Faber says.

“Eventually, you have either huge changes occurring in a peaceful fashion through reforms, or, usually, through revolutions,” said Faber.

“I think the timeframe would be within five to ten years you have a colossal mess … everywhere in the Western world,” said Faber. “I think the deficit here (in the U.S.) — irrespective of who is in the White House — will stay above a trillion dollars per annum for at least as far as the eye can see.” 

“My medicine for the U.S. is: Reduce government by minimum 50 percent,” said Faber. “The impact would be immediately an improvement in the economy.”

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