The World Is Now Headed Into A Depression

June 25, 2013

Today one of the top economists in the world told King World News that despite bounces, stocks will continue to crater and he has positioned his clients short for a collapse in global markets.  Michael Pento, founder of Pento Portfolio Strategies, also warned that central planners now have the world headed into a depression.

Pento:  “It looks like the central bankers around the world have, after years of saying they were going to keep interest rates low and they weren’t going to allow markets to work, decided to change their minds.

And I’ve seen a watershed moment for Mr. Bernanke….

“You’ve seen the releases from China, and now the Fed is feigning an interest in letting markets work.  I believe it’s because they have duped themselves into believing that all of the cocaine they have put the economy on, in order to put a floor under real estate and give a boost to equity markets, isn’t the reason why we have some semblance of growth in global GDP.

So they have now duped themselves into believing they can now remove that cocaine, and yet they think it won’t send us back to the same place where we were in December of 2007.  If the central bankers around the world see a deflationary depression taking hold of the economy, just as it did after Lehman Brothers collapsed in 2008, will they say after 5 years of manipulation of interest rates and markets that now is the time to accept that deflationary depression?  I don’t think so.

Once the economic news shows an increasingly negative trend, and it will, my guess is by the end of the year or by early 2014, they will once again admit the economy’s addiction to QE and manipulation of interest rates, and risk assets will once again be in vogue.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/24_Michael_Pento_-_The_World_Is_Now_Headed_Into_A_Depression.html

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