Wednesday, November 9, 2011

Michael Pento - Fed Members Think QE3 Absolutely Necessary

“Gold has for thousands of years been a wonderful store of wealth or you can own a Treasury or a sovereign note from an insolvent nation.  Let’s just take the case of the US ten year Treasury which is yielding 2%.  The government’s own figures show that inflation is running at 3.9%.  So you are losing 1.9%, at a bare minimum, of your purchasing power by holding a ten year note.  Real yields are negative.
So what’s happening now is that people are being forced to own gold as true and honest alternative currency, so they can keep pace with inflation.  You can’t even own the ‘safest‘ of all assets, sovereign debt, because you know if you own any of them you are going to lose money through inflation.”  

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