Going For The Gold As Governments Destroy Currencies
KingWorldNews.com
July 31, 2012
Today Michael Pento warned, “It is now becoming blatantly apparent that the central banks of the developed world are becoming desperate in their pursuit to fight deflation.” Pento also clarified, “… a central bank can always create inflation when they so choose. All they need is a firm commitment to destroy the value of the currency, and a government that is compliant towards that goal.”
Pento also stated that key governments are on board with that agenda: “That situation is quickly coming into fruition in Japan, Europe and the United States.” Today Michael Pento, of Pento Portfolio Strategies, writes exclusively for King World News to put global readers ahead of the curve, once again, on what is unfolding as a result of the major, and unprecedented moves by central banks.
Here is Pento’s piece: “It is obvious to me that the world of economics has now fully entered the Twilight Zone. As evidence, last week European Central Bank Head Mario Draghi pledged to, ‘Do whatever it takes preserve the Euro. And believe me, it will be enough.’ In this upside down world of phony Keynesian Economics, apparently doing ‘whatever it takes to preserve the Euro’ now means promising to dilute the purchasing power of the currency into oblivion.”
Michael Pento continues:
“The ECB plans to use their hoard of freshly-minted counterfeit money to purchase the insolvent debt of bankrupt nations. Incredibly, the ECB’s dedication to create unlimited inflation actually served to send bond yields much lower. The Italian 10 year note plunged 77 bps and the Spanish 10 year note dropped by 88 bps just days following the announcement. What’s more, the Euro, unbelievably, rallied to a three-week high.
Sane individuals realize that the ebullient reaction from Southern European currency and bond markets can only be temporary at best….
The Rest…HERE
