Marc Faber USA vs China

Marc Faber : " Basically, the problem of the United States is that they do not produce enough compared to the whole economy and that its net savings are very low. In other words if you have two countries or let's put it in more simple terms, you have two households or two businesses; one household spends everything it earns, one spends everything it earns pays out in dividends and borrows money to maintain the lifestyle of the owners of the family to buy a car, to buy a house, to buy appliances, mobile phones and so forth the other household or the other company - out of its earnings puts something aside and invest in education or in terms of a company in research and development or in new plans and in new machinery and so forth who do you think in the long run will be better off. Consuming means exactly what the word says consumption is you have a plate of food in front of you, you consume it then the food is gone and saving is to put it part of the food aside for the wintertime or for emergencies. So, in my opinion, US has badly abused its power to borrow money basically and has not saved at all in the last few years and obviously, in the long run, relatively speaking, your standards of living go down compared to countries like China and India where you have a high savings rate and where people then build factories and develop their infrastructure and develop the educational standards and so on. So if you look at 1950, the US is up here and the emerging economies are down here and now the US is still up here but is not up much and emerging economies stay close the gap, there is still a gap between the US and most emerging economies but you look at educational standards in the US, in many states of the US 20% of their people are illiterate you know this I mean horrible. "
Via India Economic Times