Gold Spikes as the Fed Provides Target for Dollar Destruction

Friday, January 27, 2012
By Paul Martin
January 27, 2012

Today Michael Pento told King World News that QE3 has officially commenced. Pento, who founded Pento Portfolio Strategies, said the Fed is determined to continue its war against the middle class and savers by ramping up inflation. Pento had this to say about the situation: “The Fed has indicated that quantitative easing part three has commenced. As a part of the Fed’s own version of glasnost, Bernanke has sought to lift the veil on the sausage making behind the decisions reached by the FOMC. To that end, our central bank has disclosed they now have an inflation goal of at least two percent. Therefore, the plain and sad truth is that the Bernanke Fed has now provided the holders of U.S. dollars a target rate for its destruction.”

Michael Pento continues:

“The Fed’s preferred metric of inflation is the Core Rate of the Personal Consumption Expenditures Price Index (PCEPI). This index is now trending lower, falling from 2.3% in Q2 2011 to 2.1% in Q3, on a seasonally adjusted annual rate. The Fed’s January statement acknowledged this by saying, ‘Inflation has been subdued in recent months, and longer-term inflation expectations have remained stable.’ And in Bernanke’s press conference, the Fed Chairman stated that his inflation target may have to be breached until the unemployment rate falls saying, ‘…I think there are good reasons, from a dual mandate perspective, to have inflation greater than 2%.’

The Rest…HERE

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