KING WORLD NEWS
Michael Pento
February 4, 2012
Today Michael Pento told King World News the bond bubble is going to result in the destruction of the US Dollar and the restoration of gold as the premier store of wealth around the world. Pento, who founded Pento Portfolio Strategies, also said the rise of bubbles in key areas of finance can leave market participants in shock. Pento had this to say about the situation: “They always tell you no one rings a bell when a market top or bottom is reached. But a bell is now ringing for the end of the thirty-year bull market in U.S. debt. And ironically, the bell ringer is our very own U.S. Treasury! The U.S. Treasury Borrowing Advisory Committee, which brings together dealers and Treasury officials, met last week in a closed meeting at the Hays Adams Hotel.”
Michael Pento continues:
“The committee members unanimously agreed that the Treasury should start permitting negative interest rate bids for T-bills. In other words, newly issued T-bills from the Treasury would offer investors a guaranteed negative return if held to maturity. The mania behind the U.S. debt market has reached such incredible proportions that investors are now willing to lend money to the government at a loss; right from the start of their investment. This is a clear signal that the bond market can’t get any more overcrowded and can’t get any more overpriced.
Of course, many in the MSM contend there is justification for today’s ridiculously low bond yields and that a bubble in U.S. debt is impossible. But those are some of the same individuals who claimed, back in 2006, that home prices could never decline on a national level and any talk of a bubble in real estate was nonsense. These are also the same people who assured investors in the year 2000 that prices of internet stocks were fairly priced because they should be valued based upon the number of eyeballs that viewed a webpage….