Marc Faber is interviewed on CNBC.

It is difficult to disagree with what he says. For some, his statements may be shocking, but they shouldn’t be. What is happening is the inevitability of democracy, all democracies. Our Founders recognized the unsustainability of democracy, feared it and tried to avoid it by providing the country with  a Constitutional Republic. In its early form, the US was a model of freedom and increasing wealth. Over time the country slowly morphed into a democracy, changing everything.

All democracies turn into social welfare states. All democratic social welfare states go bankrupt for politicians pander to voters by promising them more benefits. Over time more and more people try to live at the expense of fewer and fewer producers. The economy stagnates and then even reverses at some point.

The world is at this critical stage of no or limited growth. All modern industrialized democracies have become social welfare states. All are on the verge of collapse.