KING WORLD NEWS - BLOG
BROADCAST../../../../Broadcast/Broadcast.html../../../../Broadcast/Broadcast.htmlshapeimage_6_link_0
HOME../../../../King_World_News.html../../../../King_World_News.htmlshapeimage_13_link_0
BUSINESS../../../../Business.html../../../../Business.htmlshapeimage_14_link_0
GREEN../../../../Green.html../../../../Green.htmlshapeimage_15_link_0
HEALTH../../../../Health_1.html../../../../Health_1.htmlshapeimage_16_link_0
ENERGY../../../../Energy.html../../../../Energy.htmlshapeimage_17_link_0
SPORTS../../../../Sports.html../../../../Sports.htmlshapeimage_18_link_0
GOLD+../../../../Gold.html../../../../Gold.htmlshapeimage_21_link_0
 

By Michael Pento of Pento Portfolio Strategies

October 17 (King World News) - “Complete Collapse & Economic Meltdown


The gradual erosion of the U.S. dollar’s status as the world’s reserve currency has been greatly hastened of late.  This is due not only to the perpetual gridlock in D.C., but also our government’s inability to articulate a strategy to deal with the staggering $126 trillion of unfunded liabilities....


Continue reading the Michael Pento piece below...




Advertisement


To hear which company is only months from starting production at one of

the highest grade gold mines in the entire world in one of the

most mining friendly countries click on the logo:






Our addictions to debt and cheap money have finally caused our major international creditors to call for an end to dollar hegemony and to push for a “de-Americanized” world.  China, the largest U.S. creditor with $1.28 trillion in Treasury bonds, recently put out a commentary through the state-run Xinhua news agency stating that, “Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated.” 


In addition, Japan (our second largest creditor holding $1.14 trillion of U.S. debt) put out a statement through its Finance Minister last week saying, “The U.S. must avoid a situation where it cannot pay, and its triple-A ranking plunges all of a sudden.”  It is both embarrassing and hypocritical to be lectured by Japan about an intractable debt situation.  However, the sad truth is we have become completely reliant on these two nations for the stability of our bond and currency markets. 


We arrived at this condition because our central bank has compelled the nation to rely on asset bubbles for growth, and preventing the deleveraging of the economy by forcing down interest rates far below a market-based level.  For example, instead of allowing debt levels to shrink, the Fed’s virtually-free money has now caused consumer credit to surge past the $3 trillion mark by Q2 2013; that is up 22% in the past three years.  And of course, the Federal government massively stepped up its borrowing beginning in 2008, piling on over $6.8 trillion in additional publicly traded debt since the start of the Great Recession. 


While most are now celebrating the end of government gridlock (however ephemeral it may be), the truth is few understand the consequences of our addictions.  The real problems of government largess, money printing, artificial interest rates, asset bubbles and debt have not been addressed at all.  Rather, Washington has merely agreed to perpetually extend its lines of credit and to have the central bank purchase most of that new debt. 


Instead of placating the fears of our foreign creditors we have cemented into their minds that the U.S. dollar and the bond market cannot be safe repositories of their savings.  The eventual and inevitable loss of that confidence will ensure nothing less than surging prices and a complete collapse of our economy. 


The fear of an economic meltdown was the genesis of a constitutionally-based third-party political movement.  The Tea Party was formed in the United States in an attempt to prevent runaway inflation and an economic depression resulting from a crumbling currency and devalued debt.  The absolute and universal vilification of its members by both members of both parties indicates that U.S. citizens are not yet ready to undergo the pain associated with the removal of its pernicious addictions.  Since there appears to be no political solution in sight, it is of supreme importance that investors now take steps to protect their portfolios from the de-crowning of the U.S. dollar as the world’s reserve currency.


I dramatically increased the firm’s position in gold this morning.  But the massive surge the gold market is experiencing today is just the beginning of what will be a historic move.  When the US economy completely collapses, and all faith is lost in Washington, the masses will turn to gold in a way that has never been seen before in history, and this will create an upside explosion in gold that will shock the world.


IMPORTANT - Due to recent events, KWN will be releasing interviews all day today and tomorrow..


IMPORTANT - Powerful entities do not want people to have access to the news that KWN provides.  As a result we have had a constant interference with the news feed on our home page.  Simply reload the home page until you receive the news feed, or go straight into the KWN blog.  You may need to clear your cache in order to see the latest news story.  KWN readers can simply google “how to clear cache” if they are unfamiliar with how to do this.


Michael Pento: President & Founder of Pento Portfolio Strategies and the author of

“The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market”

To pre-order from Amazon CLICK HERE.


© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.


The audio interviews with Rob Arnott, Andrew Maguire, Art Cashin, Egon von Greyerz, Bill Fleckenstein, David Stockman, Robin Griffiths, Jim Grant, Gerald Celente, William Kaye, Dr. Paul Craig Roberts and Eric Sprott are available now. Also, other recent KWN interviews include Marc Faber and Felix Zulauf to listen CLICKING HERE.


Eric King

KingWorldNews.com

To return to BLOG click here.


 
 
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.html
KWN BLOGhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlshapeimage_24_link_0shapeimage_24_link_1

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Subscribe to RSS
CLICK HEREhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlshapeimage_27_link_0shapeimage_27_link_1
KWN Blog
Archiveshttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlshapeimage_28_link_0shapeimage_28_link_1
http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html