Investors are being told that the worsening sovereign debt crisis in Europe will leave the U.S. economy unscathed….[because,] since we don’t make many things to export to Europe, our GDP won’t suffer a significant decline at all…. What [has been] conveniently overlooked, [however’] is the fact that 40% of S&P 500 earnings are derived from foreign economies and the seventeen countries that make up the Eurozone have collapsed into recession. [Let me explain what effect that will have on the performance of the S&P 500 this summer.] Words: 325

So says Michael Pento (www.PentoPort.com) in edited excerpts from a King World News interview, as 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, in part [the interview can be read in its entirety here]:

Many European economies will suffer massive inflation and sovereign default — just as was the case in Greece — within the next two years. That wouldn’t be so bad if EU (17) wasn’t the second biggest economy on the planet. Recent data points illustrate that the worsening recession in Europe will continue to bring down global GDP…[and that] global slowdown will put further pressure on the U.S. economy and the earnings of multi-national corporations.

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