Pento – Gold Shines as West Continues to Destabilize the World
Today Michael Pento told King World News real inflation is running as high as a staggering 9%, and continued inflationary Fed policies are going to wipe out what’s left of the middle class in America. Pento, who founded Pento Portfolio Strategies, said the Fed is creating a bubble which is 10 times greater than the real estate bubble. Pento had this to say about the situation: “The middle class was already on the endangered species list and now it’s moved right to the top of that list. The reason the remnants of the middle class face even more danger is the Fed is now guaranteeing minimum targets of decline in the purchasing power of the dollar each and every year.”
Michael Pento continues:
“I can guarantee you this, Eric, if the Fed’s metric of inflation says we are rising at 2%, I promise you it’s closer to 7%, 8% or 9% in real terms. So the middle class is going to be wiped out. People are going to see their savings and their underlying net worth being systematically destroyed.
We are going to engender a bubble that is ten times bigger than the real estate bubble and I’ll name that bubble, it’s the bubble in US Treasuries and in sovereign debt. The eventual collapse in that bubble is going to dwarf anything we have seen to date in this ongoing financial crisis.
You don’t have to guess what happens during a period of intractable inflation or hyperinflation. If you look at the worst hyperinflation case the planet has ever witnessed, it was the Hungarian collapse in 1946. The Hungarian pengo was not even fit to line the bottom of a bird cage when the Hungarian government was finished with it.
We are seeing the same kind of dynamics which took place in Hungary, Zimbabwe and Weimar Germany, that are now, unfortunately, taking place in the United States….
Continue reading the KWN Michael Pento interview below…
“We have all of the ingredients for a battle with intractable inflation and we have a Federal Reserve which is actively promoting inflation.
The US has a federal debt that totals $15 trillion, sitting on top of revenue that only totals $2 trillion. So we have only one solution to this problem is that is default. There is no question about this.
Before this once great country defaults on its obligations, before we do that, we will go down the hyperinflation route and try to monetize it away. KWN readers have to understand that Bernanke basically confirmed this at his press conference and with his statements released this week.
Bernanke is telling you inflation is too low and he is going to counterfeit money, to whatever extent necessary, to get inflation higher. This is why you have seen gold take off to the upside. As Bernanke was speaking, the price of gold literally soared. The policies of Western central planners are continuing to destabilize the world, and one way investors are finding shelter in this storm is by owning gold.”
To Learn more about Michael Pento’s financial management services CLICK HERE.
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