Investment analyst and entrepreneur Marc Faber spoke with FOX Business Network’s (FBN) David Asman and Liz Claman about the European debt crisis and attempts by the European Union (E.U.) to restore fiscal austerity. Faber said the best course of action would be to “dissolve the EU” and he blamed “bureaucrats” for not keeping the “3% maximum fiscal deficit and government debt to GDP maximums” in order to remain fiscally sound. Faber said the EU should “let the countries default” and while it “is going to be painful” it is better than an intervention that “is not going to work in the long run.” Excerpts from the interview are below, courtesy of Fox Business Network.
On the whether the European Union was destined for failure:
“If they had kept the agreement 3% maximum fiscal deficit and government debt to GDP maximums, it could have worked. Why didn’t it work? What do these bureaucrats in Brussels do besides eating well and sleeping and sharpening their pencils? They are useless bureaucrats that brought about the financial crisis worldwide.”
On whether states in the European Union would be willing to give up their sovereignty to regain fiscal austerity:
“I doubt they are willing to do that. The best would be to dissolve the EU. Let the market sort this out. Let the countries default. It is going to be painful, but rather than intervene into something that is not going to work in the long run.”
On Germany rejecting the bailout proposal:
“Eventually they will come to some kind of compromise and there will be some kind of money printing.”