Pento – Global Recession, Monetary Madness & Gold
KingWorldNews.com
April 3, 2012
Today Michael Pento chonicles the mounting problems that Europe is facing and stated that gold is ready to explode higher if the Fed engages in more “counterfeiting.” Pento, who founded Pento Portfolio Strategies, also writes exclusively for King World News about the fact that consumer debt is rising, while savings is tumbling. Here is what Pento had to say: “The mainstream media is busy promulgating the idea that the Great Recession is a fast-fading memory and that it’s now clear sailing for the global economy. But the true numbers belie that notion. One of the supposedly good news items being celebrated in the U.S. was found in the ISM Manufacturing Survey released this week. It increased to 53.4 in March, from a level of 52.4 in the prior month.”
Michael Pento continues:
“However, the somewhat better news on manufacturing came on the back of a U.S. consumer that has fully reverted to their borrowing and consuming ways. Spending increased by 0.8% in February, the most in seven months but incomes only increased by 0.2%. More importantly, real disposable income declined by 0.1%, which was the third such decrease in the last four months. As a consequence, the savings rate fell out of bed to 3.7% from 4.3%, which was the lowest level since August 2009.
Therefore, the small rebound in manufacturing and huge increase in spending by the consumer is ersatz and unsustainable in nature. The problem is that consumer debt has now started to increase once again, at a time when it desperately needs to contract.
The Europeans have taken a small step towards addressing their problems….
The Rest…HERE
