Faber: Dysfunctional U.S. Government Spends Too Much
Swiss investor Marc Faber, who is known in the business as “Doctor Doom,” has a simple explanation for the budget problems plaguing Washington: “It’s basically a dysfunctional government that we have that is far too large that is essentially wasting money left, right and center,” he told Bloomberg Television’s “Surveillance.”
At fault are both the Republicans, who are “wasting money on the military complex,” and the Democrats, who are “basically buying votes with transfer payments, with entitlement programs, it goes on,” he said. “It is a huge waste.”
What’s even worse is that Faber told Bloomberg Television he doesn’t see a solution to wasteful government spending.
If Republicans and Democrats fail to strike a deal to increase the debt ceiling — the total amount of money the government is authorized to borrow in order to meet its existing obligations — by Thursday, Secretary of the Treasury Jack Lew has estimated that the United States will be unable to pay its bills and the government will default. Of course, that date is an approximation; Goldman Sachs has noted that November 1 is the real cutoff because that is when several obligations will come due, including Social Security and Medicare payments.