“Likewise, an economic slowdown won’t hurt gold prices this time around either, as long as Bernanke does not sit on his hands for 6 months. With Europe teetering on default, investors can be assured that the European Central Bank and the U.S. Fed will not allow another half year of deflation and money supply contraction to send the global financial system into ruins. Once an economy becomes fully addicted to inflation it is very hard to kick the habit.
Investors must understand that global central banks will do everything in their power to avoid reality and try to keep the credit bubble from bursting on both sides of the Atlantic. That’s why taking advantage of this recent pull back in gold may be the smartest move.”
- Michael Pento, via a King World News Interview: