Gold & Silver: Go “All-In”
by Dominique de Kevelioc de Bailleul
Aug 03, 2012
Calls for the Fed to make a QE announcement in September by Jim Rickards and John Taylor got another handicapper, Michael Pento, to go on the record for a likely announcement following the annual Jackson Hole meeting of the world’s central bankers in late August.
“My first impression was that the reports we had from the Wall Street Journal that the Fed was imminently going to interfere with the markets (with more QE), once again proved to be untrue,” Pento told King World News Thursday. “Bernanke is waiting for Jackson Hole. He’ll make some kind of announcement, like he did back in 2010, and then he will start to put his plan to destroy the currency in effect, probably in September.”
That’s the situation in the U.S., as Pento sees it. But within the EU, the situation is more dire and murky. Laws there don’t allow for the ECB to intervene in the bond market like the Fed can. But Pento has drawn the same conclusion as former Asst. Secretary of Treasury Paul Craig Roberts has: the laws will be broken in Europe—again, Germany’s outrage to the suggestion that the euro be monetized away will be ignored, and the EU will be taken over by a supranational cabal.
“In my estimation, the ECB is about three or four weeks away from giving a banking license to the EFSF and the ESM,” said Pento. “This will lead to unlimited purchases of European debt, and an unlimited dilution to their currency.”