Chinese Debt Soars 25-Fold, Danger In Japan & Surging Gold
KingWorldNews.com
June 29, 2014
With a non-stop flow of propaganda from Western mainstream media outlets, today Michael Pento sent King World News a fantastic piece which warns about a 25-fold increase in Chinese debt, danger in Japan, and surging gold. Pento also discusses which sector his firm is increasing its allocation to at this critical time.
By Michael Pento of Pento Portfolio Strategies
June 29 (King World News) – Chinese Debt Soars 25-Fold, Danger In Japan & Surging Gold
More than 20 years after its infamous real estate and equity bubble burst, Japan has been plagued by economic malaise, an ailment most mainstream economists have attributed to something they call a deflationary death spiral. As one lost decade turned into two, and now well into a third, Japan’s Prime Minister Shinzo Abe has vowed to remedy this deflationary flu with an enormous dose of inflation.
In Japan they affectionately refer to this elixir as Abenomics. In English, this remedy roughly translates to an enormous injection of public spending, more than a spoonful of currency destruction, chased down with a large dose of a consumption tax. And if deflation had actually been what had ailed the Japanese economy, it would appear that after more than two decades, they finally found their cure. The price of food is soaring at the fastest pace in 23 years and core consumer prices jumped 3.2 percent year over year in April.
Unfortunately, those Japanese who were only sick of the stagnant economy are starting to wonder if “Doctor Abe” misdiagnosed the original disease. With an economy in perpetual stagnation, slightly falling to stable prices were the one salve. As anyone who lived through the 1970s can avow, low growth can’t be assuaged by raising prices. And with wages excluding overtime and bonus payments falling in Japan for a 23rd straight month in April, Japan’s economy is falling victim to a new kind of outbreak — stagflation. Stagflation is an inflationary period accompanied by rising unemployment and lack of economic growth.
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