We Are Staring At Economic Destruction & Soaring Inflation

"Today Michael Pento writes exclusively for King World News to put readers ahead of the curve on what is happening with central planners. Pento warned, “The European Central Bank and Federal Reserve are both about to announce, this very month, an incredible assault on the Euro and the dollar.” Pento also cautioned, “... this is just the beginning of rising unemployment and soaring inflation.”

Pento also let investors know how to protect themselves in the coming chaos. Here is Pento’s piece: “Central banks will do something in September that causes fiat currencies to be flushed down the toilet. It will mark the beginning of the end for money that is not backed by precious metals. The events will be a desperate and final attempt to save faltering global GDP, but it will only lead to further economic destruction and intractable inflation.”

Michael Pento continues:

“The excuse being given for the upcoming assault on fiat money is the crumbling economies in Europe, which have taken down emerging markets economies as well. For example, China’s exports to the EU (17) dropped 16.2% in July, as sales to Italy plunged 26.6% from a year earlier. 

The stumbling world economy has sent prices for base metals like iron ore falling 33% since July, which is the lowest level since October 2009....

“And now the nucleus of Europe, and Germany, is starting to split. German unemployment increased five straight months in August to reach 2.9 million. Factory orders fell 7.8% in June YOY as manufacturing output contracted further in August.

And listen up all you lovers of the Phillips Curve and inflation atheists; Spain’s unemployment rate has just reached another Euro-era high of 25.1% in July. However, inflation is headed straight up, rising from 1.8% in June, to 2.7% in August. But this is just the beginning of rising unemployment and soaring inflation. Just wait until the ECB and Fed launch their attack in September.

The European Central Bank and Federal Reserve are both about to announce, this very month, an incredible assault on the Euro and the dollar. The European Union said on August 31st that it proposes to grant the ECB sole authority to grant all banking licenses.

This means the ECB would be allowed to make the European Stabilization Mechanism—if sanctioned by the German courts on September 12th--a bank, which would allow them an unfettered and unlimited ability to purchase PIIGS’ debt. This is exactly what Mario Draghi meant when he said he would do “whatever it takes to save the euro.”

Not to be outdone, Fed Chairman Bernanke gave a speech on the same day indicating that open-ended quantitative easing will most likely be announced on September 13th. Fed Presidents Eric Rosengren and John Williams spelled out what open-ended QE means. The Fed would print about $50 billion per month of newly created money until the unemployment rate and nominal GDP reach target levels set by the central bank..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/1_We_Are_Staring_At_Economic_Destruction_%26_Soaring_Inflation.html