Why, If You Think About It, We’re All Screwed
March 2, 2013
Today Michael Pento writes for King World News to explain exactly why “… the unquestionable winner of all these currency wars will be precious metals and energy related investments.” Below is Pento’s tremendous piece:
“It is sad to say there are just two reasons why the U.S. is not yet a banana republic. The first reason is that the US dollar has not yet lost its world’s reserve currency status, which is helping to keep interest rates at record low levels. If the dollar, yen and euro were not involved in a currency war, the dollar’s intrinsic decline would become much more evident, causing domestic inflation to soar, and our bond market to immediately collapse.
However, the perpetual erosion of fiat currencies will eventually cause investors to eschew the sovereign debt issued by the over-indebted nations of America, Japan and Europe—even if the dollar’s decline does not manifest itself against the euro and the yen….