Marc Faber CNBC Interview 14 July 2011

Marc Faber : "well basically I do not think they will default in terms of not paying the interest on the government debt but I think that they will default in terms of paying back the debt and the interest with depreciated or worthless dollars as a result of the FED or specifically Mister Bernanke money printing "
"Yes I think they will someway or somehow come to an agreement or they'll fiddle around with the debt ceiling or invoke the constitution whereby the president in special situations can actually increase the debt of the United States , something will happen but I do not think they will default on the debt , but I just like to point out where I disagree with the bonds bulls , the bonds bulls basically built their case around deflation , in a deflationary environment you would have essentially the Dow Jones collapsing corporate profit collapsing the economy performing very badly and in that environment the tax revenues will collapse and so the fiscal deficit instead of staying at this level or even coming down in an optimistic scenario will actually increase and so the quality of the US debt will diminish and actually for me it is mind boggling that somebody will buy a ten year US treasury at a yield of less than 3 percent denominated in US Dollars "




Marc Faber, author and publisher of the Gloom, Boom and Doom report joined CNBC to discuss a potential US default. Bob Parker, Senior Advisor at Credit Suisse and Sarah Hewin at Standard Chartered Bank joined the discussion.