"The Eurozone is worse off than even the U.S. at this point because they lack a single fiscal authority. It is difficult to implement a federal/super-sovereign approach in the Eurozone due to challenge of implementing a single taxing authority with supervisory and enforcement powers.
When asked about the possibility of dividing the Eurozone into a north and south euro, he dismissed this idea as being very unlikely.
The most likely path forward for the Eurozone will be for the ECB to continue to monetize the sovereign debt of the weaker Member States. He also stressed the point that the ultimate solution will be highly political and unpredictable and that there will be plenty of ‘noise’ on the way to the final outcome.
He was VERY bearish on U.S. government debt long term and even pointed to a chart of US 10-year note yields over the past 60 years. He then waved the laser pointer to indicate that yields will eventually go past the early 1980s highs..."
at http://seekingalpha.com/article/246287-lunch-with-marc-faber-predictions-and-insights?source=feed
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