The Fiscal Deficit in The US is a huge problem

MARC FABER: Well I mean right now the US stock market is outperforming other markets. But I think that in the US the fiscal deficit is a huge problem to which there are hardly any solutions, for the simple reason that the Democrats want to spend and the Republicans also want to spend. And nobody really wants to increase taxation. And so the deficit will in my opinion continue to increase and will necessitate money printing, but it may not lift economic activity. The second source of uncertainty is really what will happen in China. They have different views. Most economists will say well we'll have a soft landing and so forth. But I've been working in the investment business for 40 years. All the time I've heard about soft landing and no recessions and no crashes and no panics and so forth and so on. So who knows, maybe the Chinese economy will de-accelerate more rapidly than is generally expected and possibly even crash, in which case it would have a huge impact on economic activity around the world. - in abc.net.au