By Faisal Humayun:
Dr. Marc Faber, author of the Gloom, Boom and Doom report, suggested in a recent CNBC interview that the debt in the Western world will continue to increase, leading to a "Colossal Mess" over the next five to 10 years.
Dr. Faber is also of the opinion that there will be no fiscal cliff. Instead, according to Dr. Faber, there will be a "fiscal grand canyon." I had discussed the reasons for a lack of a fiscal cliff event in one of my earlier articles. In this article, I will discuss the reasons for believing that the West is, indeed, in a "Colossal Mess."
Starting with the United States, the government debt to GDP is already at 102% as of second quarter of 2012. In a sluggish growth environment, it is very unlikely that the fiscal cliff will come into effect in 2013. Instead, tax cuts will be extended until
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