If you lived beyond your means by borrowing, you need a period of deleveraging. That has happened in the U.S. only in the corporate and household sectors. Private borrowing has been replaced by government borrowing, which means the overall level of debt hasn’t been reduced. That needs to happen. The U.S. needs to cut entitlement spending meaningfully. It would be best to impose a flat tax and cut government expenditures by 50%.” - in Barron`s Roundtable
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Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
