The Federal Reserve's Disaster
Michael Pento says the mainstream is looking for improving U.S. economic data, especially coming in the 2nd half of this year .. if the economic data is good, chances are the Federal Reserve could begin tapering .. but Pento emphasizes the economy is not getting better, the Federal Reserve is now worried of giving any hint of tapering .. "The Federal Reserve saw the economic data that came out, and they were so afraid of indicating any hint of tapering that they went out of their way to make sure that tapering may not happen for a very, very long time. We had a GDP print of 1.4% if you average in Q1 and Q2 of 2013 .. They actually said in this latest report, that inflation was running at a .7% annualized rate. If you believe that fantasy then you have to ignore the fact that home prices are up double-digits (12%) year-over-year, that oil prices are well above $100 a barrel, that the U.S. is growing the money supply at a 7% annualized rate, and that stocks are at an all-time record high in nominal terms .. Bernanke knows that the economy really isn't growing at all. If the economy really isn't growing at all, you can't even mention tapering .. You have to remember that the last time Bernanke mentioned 'tapering,' in 4 days the S&P lost 80 points, and the 2-Year rate soared to 2.7% from 1.6%. So Bernanke knows that any time reality comes calling to this economy and they actually had to start tapering, the entire economy will lose its lifeline to artificial interest rates and inflation, and it will implode."
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