pog, page-20

This probably should be on the gold thread but I thought I would post this in the face of Cols last statement. Make what you want of this article.

http://seekingalpha.com/article/2247233-the-world-debt-bubble-is-about-to-burst

James P. Montes, Equity Management Academy (133 clicks)
Gold & precious metals, research analyst, momentum, contrarian
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The World Debt Bubble Is About To Burst
Jun. 1, 2014 4:49 AM ET | Includes: GDX, GLD, SLV
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AGOL, AGQ, DBS, DGL, DGLD, DGP, DGZ, DSLV, DZZ, GLD, GLDI, GLL, IAU, PHYS, SGOL, SIVR, SLV, SLVO, TBAR, UBG, UGL, UGLD, USLV, USV, ZSL over the next 72 hours. (More...)
Summary

Betting against the financial experts.
The 10 Year Note Yield signals a potential crash is near.
We are in the midst of a huge global debt bubble.
10 - Year Treasury Note Yield Collapses

In a recent interview, Michael Pento, founder and president of Pento Portfolio Management, predicted a global recession and a boom in gold prices.

Pento said the recent bond rally is "absolutely stunning." He, like many others, believed that "the Fed's taper would bring the 10-year closer to 4%," but he always had the caveat that "the one and only reason why the Fed would be getting out of monetizing 100% of the Federal deficit" was "if the economy cratered," which is "exactly what happened during Q1." Now the government and the mainstream media are telling everyone that Q2, Q3 and Q4 are going to see better than 4% annualized growth is highly questionable.

"I believe the collapse in the 10-year note will be very close to zero," Pento said, "Not only because of our own internal, intrinsic weakness," but also because China's economy, especially their real estate market, is slowing. China's 10 biggest banks reported that late payments on loans reached a 5-year high. Pento argues that, "The crumbling economy in China, the insolvency in Japan and our own intrinsic economic weakness will lead to "a global recession/depression, and that is the only reason why the yield on the 10-year note has gone from 3% to 2.44% in the matter of just a few months in spite of the fact that the Fed is tapering bond purchases" and political leaders and the mainstream media are saying that economic growth is about to accelerate.

World Debt Bubble Is About To Burst

The picture the mainstream media and Washington paint of growth is unrealistic. Q1 GDP growth was an anemic 0.1%, Homeownership rates are the lowest since 1995, 49% of Americans are on some form of government assistance, and the unemployment rate is still at 12.3%. The labor participation rate is 62.8%, which is the lowest since 1978. There are 1.3 million fewer jobs than when the Great Recession began. We are also "in the midst of a huge debt bubble." Chinese government debt is up 25 times since the year 2000, while Japan has $10 trillion in debt, which will take 56% of government income to just pay the interest on in the near future.

Click on the link to read the entire article.