- Michael Pento – This Entire House Of Cards Will Collapse!
Today one of the top economists in the world sent King World News an exclusive piece which illustrates how close the West is to collapse, despite the recent stock market action. Michael Pento, who heads Pento Portfolio Strategies, also believes it is essential to own precious metals in order to survive the coming economic storm.
Pento: “It is amazing so many investors are oblivious to the fact that the developed world is completely addicted to artificially-produced low interest rates. Perhaps that is why there is still a debate over whether the ending of QE will adversely affect the economy, and if rising rates can occur within the context of a healthy economy.
It isn’t so much about whether or not QE is about to end, or even if growth is now causing interest rates to become unglued. The truth is the end of QE and the normalization of interest rates—for whatever reason–means it will be the end of this anemic and unsustainable recovery in both Japan and the U. S. economies.
This is because you cannot separate the central banks’ influence on markets from their affect on economies. The BOJ and Fed have dramatically supported equity and real estate prices by taking interest rates to record lows. Therefore, it is simply illogical to then assume that rates can increase without negative ramifications….