This Major Fed Move Is About To Cause Gold To Skyrocket
July 8, 2012
With remarkable precision, Michael Pento correctly predicted that there would be central bank fireworks in his KWN July 4 piece. The world immediately witnessed a series of major moves by central banks around the world. Today Michael Pento, of Pento Portfolio Strategies, writes exclusively for King World News to put global readers ahead of the curve, once again, on the next major move by central planners.
Pento is now calling for another significant move, and he noted that when this unfolds, “…watch for the gold market to explode higher in price.” Here is Pento’s piece: “Spanish and Italian bond yields have now risen back up to the level they were before last week’s EU Summit. We also learned last Friday that U.S. job growth remains anemic, producing just 80k net new jobs in June. The global manufacturing index dropped to 48.9, for the first time since 2009. And emerging market economies have seen their growth rates tumble, as the European economy sinks further into recession.”
Michael Pento continues:
“It isn’t much of a surprise to learn that central banks in China, Britain, Europe and America have indicated that more money printing is just around the corner. In fact, we have recently witnessed the People’s Bank of China cut their one-year lending rate by 31 bps to 6 percent. The European Central Bank cut rates 25 bps, to .75 percent and dropped their deposit rate to zero percent.
And the Bank of England restarted their bond purchase program just two months after ending the previous program, which indicates the central bank will buy another 50 billion pounds of government debt….