Michael Pento's Mea Culpa
By Michael Pento
Apparently I was wrong. You have to be a complete lunatic to embrace
a gold standard or even suggesting our central bank behaves as if we
were on one. After debating with Mr. Mark Vitner of Wachovia on CNBC
this morning, I now realize that the Fed has done a wonderful job all
along. They have prevented all recessions, defended our currency and
have prevented all asset bubbles from occurring.
It was perfectly justified to have Pets.com trade at 15 million
times the eyeballs that clicked on their web site. Who needs earnings
when you are part of the new internet phenomenon? It was also fine to
flip a condo 5 times before it was even built. After all, shouldn't a
house that slowly disintegrates into the soil appreciate at 4 times the
rate of inflation?
We need more asset bubbles, a lower dollar, less savings and more
consumption. We need to print more money and let the Chinese worry
about producing stuff. Our money is prettier and now comes in new and
exciting colors. And as long as foreigners buy our Treasuries, who
cares about how large the debt grows.
I just feel better knowing the Fed is there to bail out rich folks,
bankers and those in debt. We need a flexible currency that can slowly
wipeout the middle class and those dumb enough to save money. I say
long live Banana Ben!