Posted: January 24, 2014 in Uncategorized
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Today one of the top economists in the world warned King World News that the Fed is going to shock the world by increasing QE to $85 to $100 billion each month by mid-2014.  He also predicted that this is going to hasten the collapse of the global fiat currency based financial system.  This is an incredibly powerful interview where Michael Pento, founder of Pento Portfolio Strategies, also forecasts this will set off a major bull market in gold, and also discussed what this historic move by the Fed will mean for investors and major markets around the world.

Pento:  “The overwhelming consensus is that the Federal Reserve is going to be able to stop QE by the end of this year — sometime around early fall.  And that it will have an inconsequential affect on interest rates….

 Continue reading the Michael Pento interview below…

 “(They also believe) it will also be inconsequential to money supply growth, and it will not affect the underlying economy.  I think the odds of that occurring are low single-digits. 

I think we are going to see a spike in interest rates.  Bear in mind they (the Fed) were 80% of all new issuance.  They were indiscriminate buyers and they didn’t care about what price those assets were trading at –they just bought them.  Now that this is coming to an end, or at least that’s what they will have us believe, I believe interest rates will rise. 

 I believe since the level of debt in the economy is $6 trillion higher than it was in 2007, at the beginning of the Great Recession, that is going to cause the real estate market to crumble, the equity market to crumble, the bond market to crumble, and I think that brings us into a recession some time in the middle of 2014. 

And if I’m wrong, and the Wall Street consensus is correct, and the end of QE means nothing for interest rates, nothing to the stock market, nothing to real estate related assets, then in that case interest rates will be negative in real terms, and that is also very bullish for gold READ MORE: http://kingworldnews.com/kingworldnews/King_World_News.html 


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