The gap between federal spending and taxation means the U.S. government debt will double in the next five to 10 years.

Marc Faber : It took the U.S. 200 years to get to a federal debt of $1 trillion in 1980, another six years to get to $2 trillion, and now it’s north of $15 trillion. Referring to a chart showing the ballooning debt-to-GDP ratio, Faber says adding in the unfunded liabilities of Medicare et al. would mean extending the chart up to “the fifth floor of this building”. The conference is being held in the basement. The gap between federal spending (more than 70% of it mandatory) and taxation means the U.S. government’s debt will double in the next five to 10 years.- in The WSJ

China rise has been fueled by a Credit bubble that will go bust

Marc Faber : China’s rise has been fueled since 2007 by a bubble in credit there.

it would burst — now or in three years? — but it’s unsustainable. What’s more, foreigners should beware investing in China’s ongoing construction boom. Faber pointed to virtually all U.S. canal and railroad companies going bust in the 19th century, ruining many a foreign investor but leaving North America with an enviable set of infrastructure. He said the Chinese don’t issue shares in companies to “enrich foreigners” but to “impoverish foreigners.” If a foreigner wants to make money in China, Faber said, they should go work there. - In the WSJ

The West wont simply accept China’s rise

Marc Faber : One way Western powers will seek leverage over China will be to gain greater control over the Middle East, which supplies the bulk of China’s oil imports. Marc Faber sees conflicts like NATO’s Libya intervention as part of a broader strategy to do this. Meanwhile, with western governments due to go bust at some point, World War III beckons along with “the complete breakdown of society.” Makes you wonder whether attending a conference on commodities or indeed anything is worthwhile if that’s our future. - in The Wall street Journal

Rising living standards in the Emerging Economies will support demand for Commodities

Marc Faber : Rising living standards in the emerging world will support demand for commodities — and keep us paying through the nose.

if you double someone’s income from $1 million to $2 million, their spending on raw materials “except maybe cocaine” doesn’t rise. Not so for someone on a few thousand dollars a year. They buy cars and the other trappings of middle-class living. - Marc Faber said at World Commodities Week in London on Tuesday morning - via the Wall street journal