The Coming Bond Market Collapse How to Survive the Demise of the U.S. Debt Market

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.

Introduction

Acknowledgments

Chapter 1: As Good as Gold?

The Great American Money Machine

“Dad, Where Does Money Come From?”

The Implications of a Fiat Currency

Notes

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

Notes

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

Notes

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

Notes

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

Notes

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

Notes

Chapter 7: Real World Europe

Greece

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

Final Jeopardy

The Canary in the Coal Mine

Notes

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

Conclusion

Notes

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

Conclusion

Notes

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

Index

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