Michael Pento – Expect Unprecedented Economic Chaos
May 11, 2013
Today one of the top economists in the world sent King World News an exclusive piece covering the tragic reality of what is really taking place with the US economy, and mounting debt. Michael Pento, who heads Pento Portfolio Strategies, also covered Europe, Japan, Australia, and more in the powerful piece below.
Bubbles Inflating Faster Than GDP
Global central banks have clearly demonstrated the ability to re-inflate stock and real estate bubbles. Global stock markets are roaring ahead of their economies and real estate prices are quickly rebounding from their recent collapse. However, rock-bottom interest rates and massive money printing have yet to show an aptitude for creating sustainable GDP growth.
There has been a lot of talk about a rebound in the equity and real estate markets helped along by the Fed’s free money. That much is certainly the truth; but the evidence of a viable and sustainable recovery built on free-market forces just isn’t there.
For example, the percentage of consumers who own their own home continued to fall during the first quarter of 2013, dropping to a national level that hasn’t been seen since the fall of 1995. The Census Bureau reported that the nation’s home ownership rate slipped to 65% in Q1 2013, a decline from 65.4% posted in the last quarter of 2012. The rate of home ownership now stands at a 17-year low!….