Did you listen to me speak yesterday? I was spectacular as usual. Things are much worse than I thought so more QE for all!!
Today Michael Pento told King World News Fed Chairman Bernanke will continue crushing the middle class and throwing money out of helictopers all the way until “doomdsday.” Pento, who founded Pento Portfolio Strategies, also noted the price of gasollne has soared 30% in the last 24 months alone. Pento believes that owners of gold can count on Bernanke’s policies continuing to push gold prices higher. Here is what Pento had to say about the situation: “Oil and gold prices were both lower before the Counterfeiter-in-Chief read his prepared testimony before the Senate Budget Committee this morning. Mr. Bernanke reiterated his view that interest rates would remain near zero until the end of 2014, or until Jupiter aligns with Mars, whichever comes last. This gave the commodity markets a boost sending gold prices surging nearly $25 an ounce and oil prices up $1.50 per barrel.” “The Fed is trying to deceive global investors into believing deflation is America’s primary concern and Bernanke insists on thinking a weak labor market will keep inflation at bay. To that end, the Fed Chairman explained why savers will continue to get the shaft by saying, ‘While conditions have certainly improved over this period, the pace of the recovery has been frustratingly slow, particularly from the perspective of the millions of workers who remain unemployed or underemployed.’ Translation, the Fed will keep printing money until doomsday.
And thanks to the government substituting out everything going up in price from their inflation calculation, the core rate of the Personal Consumption Expenditure Index (PCEPI) is actually falling….
“This allows Bernanke the temerity to claim that he expects inflation to…get this, ‘remain subdued.’ But reality is calling him a liar. According to ABC News, the average price of a gallon of gasoline is up 11% year over year and up 30% in the last two years alone. Since the core rate of the PCEPI strips out energy prices, Bernanke can claim with a straight face that inflation isn’t a concern at all.
But perhaps the real reason why Bernanke is fighting this phantom battle against deflation can be found in our fiscal dilemma. America’s debt burden makes the situation in Europe look almost utopian. EU-17 has a debt to GDP ratio of 87% ($8.2 trillion), while our figure is already north of 100% ($15.3 trillion) and climbing rapidly.
Therefore, Mr. Bernanke is aware that any significant increase in interest rates would send the U.S. quickly into insolvency, a la Greece. Perhaps that’s the real reason why the Fed is so willing to ignore the inflation that is crushing the middle class.
Bernanke is aware that the money supply must increase rapidly in order for there to be enough capital to service our debt. Negative real interest rates and the continuous destruction of our currency is just business as usual in the United States. And the sad truth is that gold’s best friend is the man in charge of our central bank.”
From our friends at Kingworldnews.com