Continued Destruction Of Money & Its Impact On Key Markets
September 29, 2012
On the heels of Spain announcing plans to borrow $266.5 billion next year, today Michael Pento writes about how the massive money printing is impacting key markets, and what to expect going forward. Pento has been incredibly accurate regarding his predictions of central bank moves. He now warns, “… investors should never fight a central bank that has pledged to do everything in their power to prop up asset prices.”
Michael Pento writes exclusively for King World News to let readers know what to expect from central planners, and how it will impact the economy and key markets. Here is Pento’s piece: “Stock markets around the world continue to levitate, despite the fact that the fundamentals behind the global economy continue to deteriorate.”
Michael Pento continues:
“U.S. second quarter GDP was revised significantly downward last week, from the previously reported 1.7%, to just 1.3%. The paltry 1.3% reading on GDP followed a first quarter print that was already an anemic 2%. Also reported last week was the worsening state of consumer’s income.
Their take home pay (after taxes) dropped 0.3% in August, as their savings rate fell to just 3.7%, from 4.1% during the prior month. Another worrisome report showed that in the month of September, manufacturing activity in the Chicago region contracted for the first time in three years according to the MNI Chicago Report (released on Friday).
But that weak and worsening economic data didn’t stop investors from sending stocks higher. The Dow Jones Industrial Average climbed 4.3% and the S&P advanced 5.7% in the third quarter….