July 23, 2012
Today Michael Pento gave this dire warning to King World News, “The bottom line is we have a world which has been dominated by fiat currencies, and we are now experiencing the end, the final throes of that failed global experiment in a purely fiat money based system.”
Pento also warned, “Clearly Europe has chosen inflationary default … but let’s not forget the United States. The US is about two years behind Europe’s pernicious path. We are now over 100% debt to GDP, and if we want to know our future, all we have to do is look across the Atlantic because that’s exactly where we are headed.”
Pento went on to discuss gold, but first, here is what Pento had to say about Europe: “You cannot, as a central bank, have a policy of creating inflation in order to keep yields lower. That is why the deflationist’s fears in Europe are quickly turning towards an inflationary scare, and more specifically a stagflationary quagmire that will quickly expedite Europe into the abyss.”
“The developed world, and specifically the European bloc at this juncture, is out to believe that you can default on your debt through inflation. They believe this will not only somehow save their economy, but also keep interest rates low.
That belief is completely antithetical to the truth. It makes no sense in the real world of economics, and it is doomed to failure….