Falling Markets & Why Gold Shorts Are Getting Suckered
November 11, 2012
On the heels of gold and silver rallying and stocks plunging this week, today Michael Pento discusses why gold will soar as the markets are clinging to the edge of a cliff. Michael Pento writes exclusively for King World News to also let readers know what to expect in Europe, and the US going forward. Here is Pento’s piece: “Spain wants the ECB to lower its borrowing costs but doesn’t want the accompanying pain. Mario Draghi has promised to buy the country’s government bonds, but only if Prime Minister Mariano Rajoy makes a request for aid from Europe’s bailout fund and also agrees to the ECB’s fiscal measures that would greatly reduce the country’s deficits.”
Michael Pento continues:
“Mr. Rajoy said on Nov. 6 that he first needs to know how much the ECB would push down Spain’s bond yields before his government applies for aid and agrees to the conditions attached. Europe’s last hold-out economy (Germany) showed signs it is finally succumbing to the continent’s recession. Exports, factory orders and industrial production all fell more than forecast in September.
Germany needs to decide whether or not they will add fiscal union to monetary union….