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Global investors are now being violently whipsawed by the decisions of
central banks, as they switch between inflationary and deflationary policies. The choice governments now face is to allow a deflationary depression to finally purge the worldwide economy of its imbalances, or try to levitate real estate, equity and bond prices by printing massive quantities of their currencies.
So says Michael Pento (www.pentoport.com) in a recent article posted on King World News.
The introduction to the article has been provided by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!). This paragraph must be included in its entirety in any re-posting to avoid copyright infringement.
Pento goes on to say (you can read his entire article exclusively here), in part:
It is vitally important for your financial well-being to be able to determine which path central banks are currently pursuing. For the moment, they have allowed the market forces of deflation to take hold. However, past history clearly signals to investors that it is only a matter of time before economic conditions deteriorate to the point where governments return to their inexorable pursuit of inflation.
The point here is to understand where we are in the cycle of inflation and deflation and then to invest accordingly.
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