EU & US Go Head To Head In Game Of Three-Card Monte
June 24, 2012
With investors around the world concerned about the fragility of the global economy, today Michael Pento, of Pento Portfolio Strategies, writes exclusively for King World News to let readers know about the EU and US going head to head in a game of three-card monte. Here is what Pento had to say about the situation: “The global economy continues to falter and the pace of that slowdown is picking up. Recent data showed that German consumer confidence dropped the most since 1998, as Italian confidence dropped to an all-time record low. The level of Spain’s non-performing loans reached the highest since 1994.”
Michael Pento continues:
Chinese consumer loan demand fell to the lowest since 2004, as their PMI continues to drop further below the line of expansion. To round things out, U.S. job openings fell by 325k, the most since September 2008. Meanwhile, the Philadelphia PMI fell the most in nearly a year and despite record low borrowing costs, existing home sales fell 1.5% in May. Despite the prediction of Wall Street shills, Europe’s funk is starting to affect the bottom line of U.S. multi-national corporations.
A great example of this came from Proctor and Gamble. The global consumer goods company cut their revenue and earnings estimates for the second time in the last two months, blaming the slowdown in emerging markets, the recession in Europe and the negative impact from a rising U.S. dollar.
The plain truth is that the developed world is either flirting with or is in recession, while emerging market growth has been cut in half….