Risk Assets Are Ready To Get Red Hot & Soar
November 17, 2012
On the heels of more volatile trading this week, today Michael Pento explains why risk assets are poised to soar. Michael Pento writes exclusively for King World News to let readers know what is happening globally that has gold set to explode to all-time highs. Here is Pento’s piece: “Nearly every key factor behind a bullish gold price is now currently in place, save one. Once this single piece of uncertainty is removed, risk asset prices should soar.”
Michael Pento continues:
“First off, the global economy is accelerating to the downside and this is causing central banks to become the most dovish they have ever been in the entire history of fiat currencies. For example, the leader of Japan’s LDP party, Shinzo Abe, called for the Bank of Japan (BOJ) to raise its year over year inflation goal to 2-3%, and to engage in unlimited money printing until deflation is fully vanquished.
He said if elected, he would forge an alliance with the BOJ to launch an all-out war on deflation and to attack the Yen—blaming a strong currency as the primary impediment to Japan’s economic recovery. Mr. Abe also called for the BOJ’s policy rate to be cut below zero.
Not only are central banks tripping over themselves to destroy their currencies, but gold should also be rising due to tensions in the Middle East….