Pento – Inflation to Rapidly Increase Around the World in 2012
March 10, 2012
Today Michael Pento told King World News that Europe’s economy is falling off a cliff, along with other parts of the world, as inflation continues to take a toll on global GDP. Pento, who founded Pento Portfolio Strategies, also noted that one of the largest corporations in the world is seeing a global slowdown. This is what Pento had to say about what is taking place: “Back in early 2011, I was one of the few economists to warn that global GDP growth would slow dramatically in the near future and that the emerging market economies would not be immune from that upcoming contraction. My prediction was based on the premise that the then incipient sovereign debt crisis in the developed world would cause the export-driven BRIC economies to stall.”
Michael Pento continues:
“We now know that the Japanese economy is contracting, while Europe’s GDP is falling off a cliff. And just last week we received more concrete evidence that emerging market economies are starting to feel the pinch from the developed world’s debt crisis.
Brazil cut interest rates by ¾ percentage point after reporting that their GDP growth during 2011 dropped to 2.7%, down from 7.5% in the prior year. China lowered their GDP forecast to 7.5% in 2012, from the reported 9.2% in 2011. The Indian economy grew at its slowest pace in more than two years at the end of 2011, as high inflation and Euro-zone insolvency put downward pressure on the economy…