Fed Meeting, European Crisis & An Inflationary Death Spiral
KingWorldNews.com
June 20, 2012
Today Michael Pento had some strong words regarding the Fed meeting, Europe’s crisis and what to expect going forward. Here is what Pento had to say to KWN about what is taking place: “The idea now is that the Fed has to come to the rescue because we see the unemployment rate has started to reverse course. We saw the averages were recently falling apart. We also saw the European debt crisis metastasizing itself across the entire globe.”
Michael Pento continues:
“So people are now clamoring for another round of QE from the Fed and another round of the LTRO from Mario Draghi. But we have to face the fact the two rounds of the LTRO did absolutely nothing to rescue the economy in Europe. If you look at Spanish yields, they hit an all-time record high this week. So Europe continues to fall apart.
People have to acknowledge the fact that the US 10-Year Treasury is at 1.6%, and mortgage rates are at an all-time record low 3.8%. So what exactly is going to happen from another round of quantitative easing?
In the unlikely event that the Fed does more QE, I would expect a short pop to the averages, but it will do further harm to the economy. It will also serve to destroy what is left of the middle class purchasing power, and it will do absolutely nothing to fix the solvency issues in Europe or the United States….
The Rest…HERE
