U.S., Japan, & The Eurozone Are Headed Down The Road To Serfdom/Fruitdom While Central Banks Are Creating A Pervasive Poverty Effect
March 4th, 2013
Michael Pento: Why, If You Think About It, We’re All Screwed
“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.
While some love to speak about the return of ‘King Dollar,’ the truth is any nation that seeks to remain viable through the life support provided by its central bank purchases of sovereign debt, should be designated a banana republic–regardless of its geographic location. That is why the U.S., Japan, and the eurozone are headed down the road to serfdom, or fruitdom if you will. This is also why the unquestionable winner of all these currency wars will be precious metals and energy related investments.”
Charles Hugh-Smith: Understanding Failed Policies: Wealth Effect, Wage Effect, Poverty Effect