Michael Pento – Expect Economic Chaos & Financial Collapse
August 6, 2013
On the heels of more volatile trading in key markets, today one of the top economists in the world sent King World News an exclusive piece warning investors to expect economic chaos and financial collapse. He also discussed what investors should be doing to protect themselves during this dangerous and chaotic environment. Michael Pento, founder of Pento Portfolio Strategies, wrote the following piece for KWN.
Pento: “Each of the last five years Wall Street pundits have predicted, and our government has promised, that a second half recovery in the economy will occur. Since 2009, they have come up with different reasons why GDP would boom in Q3 & Q4 of that year, and that this time a different and better outcome would be in store. This year, the reason we are supposed to believe in a second half recovery is because the damage from the Sequester cuts will wear off starting in — drum roll — July.
But the truth is there hasn’t been any significant damage to the economy from the Sequester. This is because cutting government spending leaves more money in the hands of the private sector. Also, the Fed has continued to pump $85 billion into the economy, even though there has been a small contraction in the deficit….