With continued volatility in key markets,
including gold and silver, today Michael Pento has written exclusively
for King World News about the greatest bubble in history and how it will
lead to an explosion in gold. Here is Pento’s tremendous piece: “Ben
Bernanke was instrumental in creating a bubble in U.S. Treasuries. His
actions have served to inflate it to the point that it has now become
the greatest bubble in the history of global investment.”
But now we find the central
bank doing something it has never done before. Something that will
guarantee the Fed will prick the very bubble it worked so hard to
create. The Fed has adopted an inflation target. In other words, a
minimum rate of decline in the purchasing power of dollars—a rate that
once achieved by official government metrics, will be much greater in
the real world.
Read More
Michael Pento continues:
“Not only has the Chairman
of the Federal Reserve guaranteed that current bond holders will get
destroyed once the sovereign debt bubble bursts, but he has also begun
to inflate yet another massive bubble in U.S. equity prices.
In the summer of 2007, just
before the start of the Great Recession, the Fed Funds rate and the
1-Year T-Bill were both trading north of 5%....
“Then, starting in September of 2007, the
Fed began to aggressively lower its target rate on interbank lending.
Global investors were put on notice that bond yields, which were already
at low levels, would soon go down to unchartered territory. Both the
Fed’s target rate and the 1-Year T-Bill would be near zero percent by
the end of 2008, and smart investors made a fortune taking the toboggan
ride down Bernanke’s yield slope.
Read More