Man Who Predicted Riots In Athens And Chaos In Markets Now Says World Hurtling Toward Full-Blown Collapse

With news of a so-called deal being reached between Greece and the EU, today the man who saidThere Is No Deal…Riots And Chaos In Athens And Markets On Monday warned King World News that the world is now hurtling toward full-blown collapse. 

Eric King:  "Michael, we've had your piece out Central Planners About To Unleash Economic Hell On Earth.  It's been getting a lot of attention from all over the globe.  It was very unique and I think for some people they related to it because they look around at the invisible hand, which is not so invisible, that is managing the markets, all of the money printing, all of the insanity, and it's just the same thing day-after-day, week-after-week — nothing seems to change.  And of course everything works until it stops working, but can you talk about this?"

Money Printing Is Destroying The World

Michael Pento:  "Zero interest rate policies and quantitative easing across the globe did not save the world from the Great Recession.  The primary function of taking interest rates to zero percent and printing trillions of dollars — what did that do?  It did two things:  It reinflated old asset bubbles — thus making the rich even richer and destroying the middle class and lower classes.  The second thing it did is it encouraged a massive increase in the amount of aggregate debt outstanding.

Global Debt Now A Staggering 290 Percent Of World GDP

Global debt increased by $60 trillion in nominal terms since 2008.  Let me say that number again — $60 trillion.  So when you make money free and make the amount of money available to be borrowed virtually unlimited, what did people do?  They took on even more debt.  World debt is now close to (a staggering) 290 percent of global GDP.

Money Printing Failed

Here is a key point I want to make:  All of this money printing did not rescue economic activity.  Japan's GDP is lower today than in 2012, after wrecking the value of the currency by 40 percent.  Turning to the United States, we had a (reported) 5 percent GDP growth in the 3rd quarter.  That (figure) was cut in half in the 4th quarter.  And if you take the aggregate of GDP growth in 2014 of 2.4 percent, it's lower than it was in 2010.

Mass Insolvency On A Worldwide Basis

If you turn to China, Europe, all across the world, we have not been able to engender growth from zero percent interest rates and quantitative easing.  What we have done is we have levitated and reinflated asset bubbles, and we have now set the world up with such a massive amount of debt that once interest rates normalize, we will have mass insolvency on a worldwide basis." 

http://kingworldnews.com/man-predicted-riots-athens-chaos-markets-now-says-world-hurting-toward-full-blown-collapse/