Here Is What Will Fuel The Move Higher In Hard Assets
October 27, 2012
On the heels of another volatile trading week, today Michael Pento discusses what will fuel the move higher in hard assets. Michael Pento writes exclusively for King World News to let readers know what to expect going forward. Here is Pento’s piece: “It is a basic rule of human nature not to voluntarily self-inflict pain upon ourselves. If there is any way to avoid the day of reckoning, even if it means the eventual catastrophe will be much worse if we delay, most people choose to hold reality in abeyance.”
Michael Pento continues:
“This principle applies to countries as well because the notion of embracing austerity on a national level goes against the grain of our collective psyche. The Spanish economy continues its downward spiral, as the level of unemployment hit yet another record high (now north of 25%), as 5.78 million people were out of work at the end of the third quarter.
Prime Minister Mariano Rajoy is faced with the dilemma of either allowing their onerous debt service payments to completely bankrupt his country, or voluntarily accepting the ECB’s austerity measures, which would mean Mario Draghi takes control of Spain’s interest rates….