The coming financial apocalypse and what government and individuals can do to insulate themselves against the worst shocks
In this controversial book a noted adherent of Austrian School of Economics theories advances the thesis that the United States is fast approaching the end stage of the biggest asset bubble in history. He describes how the bursting of the bubble will cause a massive interest rate shock that will send the US consumer economy and the US government—pumped up by massive Treasury debt—into bankruptcy, an event that will send shockwaves throughout the global economy. Michael Pento examines how policies followed by both the Federal Reserve and private industry have contributed to the impending interest rate disaster and highlights the similarities between the US and European debt crisis. But the book isn't all doom and gloom. Pento also provides well-reasoned solutions that, government, industry and individuals can take to insulate themselves against the coming crisis.
- Paints an alarmingly vivid picture of the massive interest rate shock which soon will send consumers and the government into bankruptcy
- Backed by a wealth of historical and economic data, Pento explains how the bubble was created and what the U.S. can do to mitigate the impending crisis
- Provides investors with sound strategies for protecting themselves and their assets against the coming financial apocalypse
- Explains why retirees, in particular, will be at risk as real estate prices decline, pensions weaken, and the bond bubble bursts
Michael G. Pento is the President and founder of Pento Portfolio Strategies (PPS). PPS is a Registered Investment Advisory Firm that provides money management services and research for individual and institutional clients.
Michael is a well-established specialist in markets and economics and a regular guest on CNBC, CNN, Bloomberg, Fox Business Network, and other international media outlets. His market analysis can also be read in most major financial publications, including the Wall Street Journal. He also acts as a financial columnist for Forbes, contributor to TheStreet.com, and a blogger at the Huffington Post.
Prior to starting PPS, Michael served as a senior economist and vice president of the managed products division of Euro Pacific Capital. Additionally, Michael has worked at an investment advisory firm where he helped create ETFs and UITs that were sold throughout Wall Street. Earlier in his career, he spent two years on the floor of the New York Stock Exchange. He has carried Series 7, 63, 65, 55, and Life and Health Insurance Licenses. Michael graduated from Rowan University in 1991.
Chapter 1: As Good as Gold?
The Great American Money Machine
“Dad, Where Does Money Come From?”
The Implications of a Fiat Currency
Chapter 2: The Anatomy of a Bubble
The Great Depression—An Historical Comparison
Two Decades of a Bubble Economy
Does CDO Rhyme with Tulip Bulb?
Today’s Bubble in Bonds Rhymes with the Debt-fueled Real Estate Crisis
Chapter 3: Bernanke’s Hair of the Dog Economy
Austrian Trade Cycle Theory versus Keynesian Toys and Candy
“End This Depression Now!”- The Game Show
“I’m Not Addicted to Easy Money…and I Can Stop At Anytime”
No Way Out—Starring Ben Bernanke …
The Thirty-year Party in the Bond Market
Chapter 4: Deflation Phobia and Inflation Philos
Myth 1—Deflation is Evil
Common Fed-lore Myth 1—The Myth of the Deflationary Death Spiral Monster
The Truth About Price Deflation…
Fed-lore Myth 2: Japan Proves Debt and Deflation Go Hand-in-Hand
Myth 3: The Keynesian Fed-lore of the Phillips curve
Myth 4: You Can Rely on Government Statistics
Myth 5: The Fed Was Created for Your Benefit
Chapter 5: The Bubble Reality Check
The Investor Reality Check
The Interest Rate Reality Check
The Teaser Rate on U.S. Debt—Reality Check
Banker Reality Check
The China Reality Check
Washington’s Addiction to Debt—Reality Check
Chapter 6: The End of an Empire
The End of a Monetary System
The Economic Laws of Debt
US Debt - This Time it’s Different
Is Austerity a Bad Thing?
Where Will All the Money Go?
The Bell is Ringing for the Bubble in the Bond Market
Banana Ben to the Rescue
The Cost of an Empire
Chapter 7: Real World Europe
Dr. Hayek vs. Dr. Keynes
Dr. Keynes and Dr. Hayek and America’s Bout with Hyperinflation
I’ll Take Currency Debasement for $40 Billion. . . a Month
The Canary in the Coal Mine
Chapter 8: The Debt Crisis
From Pioneer to Penurious....
The Sixteenth Amendment …The Beginning of the Slippery Slope
Mexican Debt Crisis
The Asian Contagion
Russian Debt Crisis
The Debt Crisis Fall Out
What Would it Look Like Here?
It Can’t Happen Here?
I Don’t Want To Be Right
Chapter 9: What Can The Government Do To Mollify The Debt Collapse?
Solution 1: Allow The Deleveraging Process To Happen
Solution 2:Strengthen and Stabilize The U.S. Dollar
Solution 3: Allow Interest Rates To Rise To The Supply Of Savings vs The Demand For Money
Solution 4: Balance the Budget
Solution 5: Aggressively Reduce The Amount Of Regulatory Burden
Solution 6: Simplify The Tax Code—
Solution 7: Fair Trade and a Free Trade—
Solution 8: Overhaul Education
Chapter 10: How to Invest Your Money Before and After the Bond Bubble Bursts
What to Own When U.S. Debt and the Dollar Collapse
About the Author