Early 2017 Record Scam Stock Market Going to Blow Up-Michael Pento
By Greg Hunter’s USAWatchdog.com
Money manager Michael Pento says don’t get too comfortable with the record highs in the stock market. Pento warns, “In December of 2015, the Fed raised rates. It was the first time in a decade. From the middle of December to the end of December (2015), it was nirvana. They raised rates. There was no problem, and then came January. The first trading day of January, boom, and we had the worst January in the history of all Januarys in the stock market. I think the very same thing is going to happen in 2017, but I think it’s going to be worse. Not only are we going to fall, I think there is going to be a huge tremor in China and in the emerging markets. That’s early in 2017, and when that occurs, Janet Yellen (Fed Head) can forget about three rate hikes. I think she will not get more than one rate hike out of the way before this whole thing unwinds and unfolds. Then, you are going to get a reversal of those rate hikes. You are going to go back into QE (quantitative easing or money printing) in 2017.”
Pento goes on to predict, “I know gold is suffering huge right now, and in full disclosure, I sold most of my gold after the election of Donald Trump. I knew we had rising real interest rates and a stronger dollar. That’s temporary. It’s not going to last very long, but when it reverses, oh boy, it’s going to reverse really hard and really strong. I am an active manager, and I can buy it back, but if you are a long term holder of gold, you should hold gold. If you are a long, long term holder of gold, you should be using this selloff to buy more gold. . . . This is going to reverse in early 2017. You are going to hit 3% or 4% on the 10-year Treasury, and the whole scam is going to blow up. We have a record amount of debt worldwide. . . .This thing is going to unravel in 2017, and then you are going to see, I believe, helicopter money on the other side. So, you better get ready to own gold again if you sold it.”
On the record bubble in bonds, Pento contends, “Where’s the 10-year Treasury right now? It was 1.3%, and now it’s around 2.6%. We’re going to 4% on the 10-year Treasury. That, by definition, is an absolute bursting of the bond bubble. The problem is this: All assets are priced off of the ‘risk free’ rate of return, ‘risk free’ rate of return on sovereign debt. All asset prices were priced off 1.3% of the 10-year Treasury, or a negative 40 basis points on the Japanese 10-year, or negative yielding German bunds, all assets, and yes that includes real estate and stocks. So, the bond bubble is epic. It is that big in proportion, and it is now bursting.”
Pento goes on to warn, “The real estate market is starting to go off-line. If you look at new home starts, they were down 19% in November month over month. There is no more refinancing market. It’s gone off-line. The initial purchase applications have flat lined. . . . As the housing market goes, so goes the economy. While the Dow and the S&P 500 have surged after November 9th, after Trump was elected, emerging markets are down 8%. . . . The emerging market economies and their currencies are crashing, and that is where I see the epicenter of the bubble breaks.”
In closing, Pento says, “This stronger dollar and this rise in Treasury yields is not going to last very long. They are going to have to reverse course. When they do, they are going to temporarily bring that yield back down. They are going to create unprecedented inflation like you have never seen before–even worse that the 1970’s. You are going to want to have gold at that juncture.”
Join Greg Hunter as he goes One-on-One with Michael Pento of Pento Portfolio Strategies.
(There is much more in the video interview.)
After the Interview:
There is free information, analysis, videos and podcasts, and to get a copy of his book titled “The Coming Bond Market Collapse,” go to PentoPort.com. For a more complete look at Michael Pento’s “Inflation/Deflation Dynamic Portfolio,” please click here.
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
Their Broke Busted and Disgusted_
When All Else Fail*Where Do They Glow?
Nuclear WAR!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
*But what if the CIA/Muslim brotherhood started a war and nobody came?
That my faker’s, is the question and would they then, turn on each other?
Let’s pray. . .
The new world disorder boy’s cant take China without Russia, the Kremlin must go. This is our last chance. There’s just one problem, a big one. That little guy, Vlad[the impaler]Putin. He has a way, of getting in the way.
The Elite’s Plans Are Failing, Next Plan, An All Out Event – Episode 1157b
Dec 20, 2016 The X22 Spotlight Report
https://www.youtube.com/watch?v=MDeGLB3W-98
Wars need people, people don’t need war!
https://www.youtube.com/watch?v=i2hFmQCHLk4
https://www.youtube.com/watch?v=Xn8Np2WF07E
Beth,
https://www.youtube.com/watch?v=CNIrPLHVfdI
Reality Check: 5 Problems with CIA Claim That Russia Hacked DNC/Podesta emails
Ben Swann
…..this is a Reality Check you won’t see anywhere else on the main stream!
Check out comments too, out of this world! LOL!
Blog/2016 U.S. Presidential Election
Posted Dec 21, 2016 by Martin Armstrong
Ben Swann is not a national TV journalist, but he is making a name for himself on his Atlanta, Georgia, station by going against the mainstream media. Here is Swann’s piece on the five problems with the Democrats’ claims that Russia hacked the DNC files and gave them to Wikileaks. Wikileaks outright denied this claim and stated bluntly that their source was a LEAK and not a HACK.
https://www.armstrongeconomics.com/international-news/north_america/2016-u-s-presidential-election/local-cbs-in-atlanta-breaks-with-national-mainstream-media/
CUCKSLAYER 3000
Putin drove me to the polling station. He was offering 1 bottle of vodka per vote, for Trump!
Is Michael Pento talking about selling and buying physical gold or paper gold on behalf of his clients because according to rob kirby it is difficult to source physical gold in large volume and you have to pay significantly above spot price to get it? Maybe he will lay his hands on some soon to be rehypothicated confiscated Indian gold when it is dumped on the market.
If debt is the bomb, rising interest rates are the fuse. The fed needs to step on the gas pedal again in order to lower interest rates. The law of diminishing returns demand infinitely more money printing than before in order to get the same effect.
Along with all Pento says is to come … the globalists plan to start World War III to cover up their economic problems by getting Russia and Turkey into a shooting war (first they shoot a passenger plane down, then they have Turkey shoot down a Russian jet, now they have a Turkish security guard shoot a Russian Ambassador) … it is obvious a Turkey Russia conflict is how the globalists plan to get their World War III started … they keep striking the match hoping to inflame Russia so that all of NATO can then come to the aid of Turkey (requiring the printing of hundreds of trillions of war dollars that will flesh out the banksters failed fiat system) … Pento has taken a big chance selling his gold now based purely on economic indicators because as everyone can easily see the globalists have not stopped trying to get their World War III started (another and another Russian Ambassador will be shot or US/NATO troops put directly on Russia’s border, etc., etc.) … buying gold back the day after World War III starts may cost an easy extra $1000 dollars per ounce!!
Erdogan might be a bit more compliant if some of his bodyguards are on NATO’s payroll.
History never repeats. Ah, I think it does with greater ferocity.
Thank you Greg for all of your publications in 2017!
and the advancement of technology allows us to make the same mistakes on a grander scale
I abhor the bond market. It is something that is as clear as mud. China has had to devalue the Yuan. India and Venezuala are on the verge of a revolution due to efforts to restrict the currency. As far as interest rates with regard to housing in the US, obviously, the refi market has been killed. For the moment. It is already being reborn with adjustable rates along with assumable VA loans for those that can jump through all the hoops and qualify. I was fortunate and my VA refi funded on Monday at a 2.9% 30-year fixed interest rate with a generous lender credit. It was the bargain of a lifetime! I do not expect to see that interest rate, again, ever.
I remember the 1980s, and the 2000 dot.com bubble. People adapt. Government’s adapt. I expect that the US economy will grow due to decreased regulations, lower taxes, and simply the idea that you can start a business and not be taxed or regulated into oblivion by the federal government. I hope Trump lays off government workers. Tons and tons of them. What a waste of money! Small businesses have always been the engine that drove the US economy. Period.
I agree with some of the things Mr. Pento said but I disagree on others. Let’s give Trump and his team a chance to rectify 8 years of hatred against capitalism! Please.
This sounds awful but, as a long term gold/silver holder I’m tired of the manipulations and continual smashing that has been endured for at the least the last 8 years. Bring on the economic crisis and what ever it brings with it, it’s going to happen anyway so let’s go.
Nothing ever happens as you expect it to or according to plan.
Just ask Hillary.
Winning is being in the right place at the right time, being prepared and taking action, but there is never any guarantee of success.
What a breathtaking interview!!!
I think Michael is right.
I really like this straigth forward way of puttung things out.
Thanks Greg!
Thank you Uma. I too thought it was a sharp clear analysis of what is happening now and the probable events of 2017. Merry Christmas!!
Greg
He’s right, the best advice for, the man in the street, is to buy gold and silver, then hang on like grim death until inflation has nearly topped, then sell. . .
If you want to gamble, have an active portfolio. . . Remember if he (the manager) calls it wrong, he might lose his job, but you’ll lose your money !
You are correct when you say hold on to it tight. The government and thieves will be trying to pry it out of your hands.
I’m going to exercise my First Amendment right to wish you (Greg) and all your fans a very Merry Christmas!
dslarsen,
Merry Christmas to you and yours!!!
Greg
Sell the bullion for what Simon???
Useless, hyper – inflated paper???
Great Christmas gift from Michael… loaded with insight and integrity!
I don’t why so many are predicting major problems in China when it is the US that is on a collision course with an economic and financial collapse.
China is dumping US treasuries at a record pace before the USD collapses and is likely using the funds to buy something that will be appreciating rather than depreciating such as PMs like gold. Once the USD is toast, China will announce it’s true gold holdings and you can expect a major rebound in their currency, or does this sound far fetched?
Europe and America are China’s biggest export markets though. All the major economies will collapse together. China, however, sees the economic winter approaching and is making preparations (investing in physical assets around the globe, stockpiling gold, oil, copper etc. investing heavily in renewable energy…) A global crash and reset could confirm China as the new world power (if America doesn’t throw its toys out of the pram and destroy everything).
China’s Silk Road is a backstop measure to re-route survival mode AWAY from the West (and Westernized Europe). The Third World, being Russia and her old satellites, Indonesia, and South America… etc. (whatever is left). Were are coming to One World.
Greg,
There’s more than a bond market collapse going on. Take a look at the Federal Reserves Banks balance sheet that was released on 12/15/2016.
https://www.federalreserve.gov/releases/h41/current/h41.pdf
I’m no economist, but how close is the Federal Reserve Bank to default when its operating capital is reported to be 4,417,371 while holding 4,242,440 in debt? I agree with Michael Pinto that the Bond market collapse is going to burst the global economic bubble. How long can the Federal Reserve Bank continue to buy and hold U.S. treasuries when they are losing money at a record pace?
Everyone knows that stealth QE money printing by the Federal Reserve Bank (thanks to reserve currency status of the dollar) is what’s really driving the stock market to 20000. The bigger question is how long will the Chinese continue to take this beating and allow the Yuan to be crushed under the weight of the dollar? Not long I assure you.
My tip to your readers who may be tuned in. Have hard assets ( real estate, gold and silver, jewelry) in your possession and stay out of debt to be ready for the coming fire sale. In 2010 when the real estate bubble burst in Florida, I had to pay cash for foreclosure homes. The banks would not take credit. A proof of funds letter meant nothing. The trick this time around is to hold precious metals to the other side of the reset in order to get top dollar for your investment. In order to do that, you have to be patient. Its a buy and hold strategy, not a get rich quick scheme.
“The bigger question is how long will the Chinese continue to take this beating and allow the Yuan to be crushed under the weight of the dollar? Not long I assure you”.
Jerry
POTUS O and Jack Lew want to leave office 1-20-2017 with the best economic stats they can put up on the board. Only 1 more month to go. All of the DEMs want to point back to when they handed the baton over to the the DON and be able to say look at the awesome economy we handed him. IMO!
The Chinese know the true state of the US economy and that the Dollar will begin to go lower once 1-20-17 has passed or possibly sooner because many in the “Wall Street Know” will begin to short it and go long physical Gold and Silver.
Will they hold off and be patient another month, (as you are suggesting to all watchdogers above), so as not to show any of their cards to the new administration? We’ll see. And we will also see if the DON actually is inaugurated on schedule. I have to assume that he and his team know what the CIA is capable of.
Best, Macray
Pento’s one smart guy. Easy to follow his logic, well laid out. Great interview Greg… Chip
Thanks Greg. Answered my questions about bonds, and the effects it has on stocks. Goods will be needed, and a new system to exchange these goods. By 20/20 who knows what the world will look like.
EXCELLENT interview as always Greg. Keep up the Great Work, I for one appreciate the service you provide.
Thank you Lawrence. Merry Christmas!!!
Greg
Outstanding interview Greg. Michael Pento’s analysis and conclusions seem rock solid to this non-participanting market watcher. The ongoing post election rally has seemed like a bull trap; imo if you stay in past next Friday you will be in that trap. Pento’s tax rationale/analysis is excellent.
Love the way you guys signed off — Merry Christmas, God Bless everyone.
Hi Greg,
Wow! I can even say it backwards !woW.
Great interview.
Shalom,
CC
That’s a good chuckle – and I’m not saying it backwards! Merry Christmas CC!
Excellent point on the expectation of lower CG taxes in 2017 will cause a selloff in early January. Any selloff magnitude will be exacerbated by the HFT algos; I expect the exchanges may close for at least a week. Should that happen, stop everything else and run for the grocery store, fill your tank up, buy that extra box of ammo, and take all your cash out of the bank. Michael is far too sanguine that the banks won’t close; but the implosion of China and the US stock indices may be the proverbial event that sets all the dominoes tumbling; why take the risk?
I have watched these financial pundits speak to this issue for more than a couple of years now, and am fed up with their prognostication about what they believe is going to happen. I’ll believe it when I see it, but I am staying one step ahead of that ball as the toss it around. It is always a good idea to be prepared for any and all possible circumstances that may befall us because idiots are manning the tiller.
I am beginning to think they are turning straw into gold in order to supply the market. Maybe it is a good analogy for paper being turned into gold contracts – that or the Emperor’s new clothes.
I believe Mr. Pento is on to something. I have some of the same sentiments and more portentousness.
Greg?
Would you be able to get Charles Ortel back on the show?
That was a great interview….check this out…it’s happening!
Clinton Donors Want to Investigate How Hillary Spent $1.5 Billion in Campaign Donations | Armstrong Economics
https://www.armstrongeconomics.com/international-news/north_america/2016-u-s-presidential-election/clinton-donors-want-to-investigate-where-hillary-spent-1-5-billion-for-her-campaign/
Hi Greg,
In regards to China-when do you think they play the gold card? Is that not the reason they’ve been hoarding since 09? Maybe when they exhaust the treasury selling? Is that not the endgame? Thanks for the great service you do. Merry Christmas!
When everything crashes. Why rock the boat when they are acquiring gold on the cheap and trying to convert their paper holdings into physical assets?
Thanks Diane,
That is a good article! I wondered if she would got out of the race unscathed. I see what Comey is doing; just waiting for a new administration to come in before he indicts her, but I have often wondered if her donors would let her off the hook. THanks.
Shalom,
CC
GREG: On Monday Egon made the statement- “THIS IS THE PERFECT TRAP” ie: the stock market. Michael is saying about the same thing.
The elite’s have sucked the people back into the markets. They will crash it at the time of their choosing. People will loose their life savings- massive financial losses everywhere.
Gold and silver is where the elite’s have their money- in the only real money. Most people will not be able to buy gold/silver like Michael. They will be screwed. Buy it now!! Better to be a few weeks/months early than be a day to late!
Too bad, Egon von Greyerz forgot to say that the pension funds wil be the most pathetic victims of this perfect trap.
Epic question Greg. I never laughed so hard -“Are you going to be able to buy your gold back?”
That said, Michael Pento is one of my favorites. He is a man with integrity and no hidden agendas. Thanks for having him on.
Pento trades in paper gold. I doubt if he has even one physical ounce hidden under the mattress.
“Why Invest In The Monetary Metals and Their Miners If They Won’t Defend Themselves?”, by Chris Powell of GATA
Echoing some points we’ve made here recently, today GATA Secretary/Treasurer Chris Powell slams the pathetic rock-breaker CEOs of mining companies for failing to understand the forces aligned against their companies. In doing so, these short-sighted geologists harm not only their companies and employees but their shareholders, too.
http://www.tfmetalsreport.com/blog/8058/guest-post-why-invest-monetary-metals-and-their-miners-if-they-wont-defend-themselves-chri
If they destroy the mining industry that will ultimately be bullish for precious metals.
ok, michael pento has his ideas. i subscribe to a few of them.
however, i do not believe 2017 is “the year” everything comes
unraveled. the fed can skate thru this just has it has done for years.
when and if it corrects, they’ll glue it back together some how…
regardless, if you’re holding a barrel of gold/silver or not. if
they find it convenient to take/tax your pm’s, so what? i’ve heard this
diatribe for years now. it’s getting old. no way do i believe
the bond mkt is going to crash. nor do i believe the stock mkt is
going to crash. think about the people who have stayed out of the
stock mkt the last 4 years…what do they have to show for it?
Greg,
Another great guest and interview. Pento is sharp and enlightening on these issues. Thank you for your continuous fine work my brother.
Unrelated, but has anyone else had a hard time believing the alleged Russian ambassador shooting? The thing looks staged and fake to me. If so, that means Russia is also engaged in false flags. Then ask, for what purpose? Strange times we are living in.
Greg, Merry Christmas. Thank you for all your efforts again this year. You and many of your guests have awakened, and educated me, thankfully. I hope we make it to other side of 2020 together.
What do you mean with “the other side of 2020” ?
2020 is the date James Sinclair states that the Great Leveling and the Great Reset will be over with, and the US comes out of it. It seems to me we are in the Reset now phase now. Watch for Gold emancipation to physical from paper market and China to lead.
Greg, this Michael Pento interview was probably my favorite one this year. His analysis and logic is very easy to follow and he even suggested time frames of when things will occur. Bravo. I hope you have him on more often in 2017, perhaps towards the end of Q1 to see if things really are headed south as he suggests they will. Keep up the great work and….MERRY CHRISTMAS!
Hold on to your hats.
http://fortune.com/2016/12/20/goldman-yuan-decline-warning-rmb-china-currency/
If this outflow continues you’re going to see China do three things in this order.
1. Reset the gold prices through the Shanghai Gold Exchange.
2. Back the Yuan with it.
3. Sell off any remaining U.S. treasuries.
Before you discount this prediction you might want to be reminded that China purchased gold vaults strategically in:
1. New York City
2. London
3. Frankfurt
They’re not buying gold and gold vaults globally because they have some kind of love affair with gold. They know at some point, they must breakaway away from the control of the Federal Reserve Bank and its printing press in order to survive economically. If this trend continues, and the PBOC cannot control capital outflows, they will be put in a position to where they have no other choice but to pull the trigger on the reset, rather than watch their entire economic system be crushed underneath the weight of the dollar and its associated debt. With Trump coming into office in January and facing the possibility of an import tax , along with the dollar sucking the life out of your currency, what would you do?
Greg…. Great pick for the interview. Merry Christmas Greg and Michael !
This sure is not the Elizabeth Warren for Hillary we hear at the election about the Credit market eh? https://youtu.be/0SGdLpPqjeA
Pento was pumping gold on king world news for a long time. His timing has not been helpful.
Greg
I’m confused about one of Michael Pento’s comments.
Did Michael Pento say that he dumped his gold investments (in paper?) to buy later when prices are better? Since we don’t know when everything collapses, investments in this format won’t be worth the ink that they’re printed on….could be anytime now, so why would a money manager, who knows the true value of paper versus physical gold, buy gold in paper in the first place? If it wasn’t paper gold that he sold, why would he sell his gold now when gold has been predicted to go up so dramatically in the future? If I got this whole scenario completely wrong, please disregard. Have a wonderful Christmas!
Linda L.
Very few very successful money managers believe everything collapses in the near future. I’m not saying there isn’t that possibility.
There have been a few well followed PM analysts that have been calling for gold to fall the past 5 weeks and possibly longer. Other analysts have not disagreed with these forecasts, but instead point out to their followers that the primary reason you buy physical PM’s are for insurance purposes.
MP, like you pointed out is a money manager. Most money mangers, including MP, are in the business of making money for their clients. If he wishes to keep his clients he strives to be successful at his business. Most likely he discusses the insurance aspect with each client, and may advise them to hold some physical for the long term as he suggests in the interview. I would guess he does that himself too!
But remember he said he was an active manager and that means he can trade paper gold within seconds every day.
He obviously believed Gold was also going to fall the past 5 weeks and acted accordingly to make money for his clients.
I believe he sees paper gold going up next year and may be buying gold very shortly again to try to make his clients happy!
I can see the chain of calls now.
https://www.ft.com/content/90299b9e-c789-11e6-9043-7e34c07b46ef
– The Italian government calls Christine Lagarde at the IMF to ask for a loan.
– Christine Lagarde then calls Janet Yellen at the Federal Reserve Bank to ask for loan.
– Janet Yellen then calls James Carney at the ECB to ask for a loan.
– James Carney then calls the PBOC to ask for a loan.
– The PBOC then calls the 1st Bank of Iran and says can we get a loan for 50 Billion dollars? The 1st Bank of Iran says sure. We’ll set you up with a line of credit. We just got an extra 150 billion dollars from the Ketchup King.
If you believe in prepping, there may be one prep you don’t have yet – a safe.
Many folks shun the idea of buying “paper gold” which they’ll never see, let alone touch. But they turn around and have their gold stored offshore! Please tell me, if the global collapse happens, why would any foreign power, whose people are starving and rioting in the streets, not seize whatever real assets they could? Of course they would!
Buy a safe.
One of the reasons why I like gold bars is that they have zero maintenance cost and do not need a careful handling. I have been keeping my uncovered gold bars in humid dirty places. They are still in the same conditions as when I bought them in 2008.
Right, silver tarnishes but gold only gets dusty. You must be a rich man to have gold bars! JK
Robert
One might consider buying 2 safes.
You never know if you will be forced to open one. A safe with a little bit of cash and copies of some important papers? And another one in a secure location with some PMs!
Or just one safe and maybe consider adopting a GS at your local rescue!
https://duckduckgo.com/?q=german+shepherd+attack+dogs&t=hs&iax=1&ia=images&iai=http%3A%2F%2F4.bp.blogspot.com%2F_S2NbJIwrsZc%2FR0_0SulIOdI%2FAAAAAAAAC1I%2FCbGWc9AJ1jA%2Fs1600-R%2FDog-GermanShepherd-01.jpg
I wish I could have a large dog. My youngest son is allergic to them and they bring on severe asthma.
I agree Robert, ownership of physical metal held off shore or in a safety deposit box, is as good as paper gold, when they close their doors………..Celente, had first hand experience.
I guess there’s a reason for private individuals to have their metal stored offshore but I personally don’t get it. Very few private citizens would have so much gold that it couldn’t be stored at home.
would you advise having a concealed one? A visible one might be worse than just hiding stuff behind the sofa.
First, if you can’t touch it, you don’t own it.
Secondly yes, conceal any safe. If bad guys find a safe they can easily get it opened. Think ‘gun-to-head’. If that doesn’t work for bad guy, think ‘gun-to-head-of-loved-one’. You’ll open it.
This sceptered isle.
A buried 8″ inch wide plastic pipe with end caps on it works for me.
Just remember where you hide it. My grandfather said that during the depression government regulators routinely inspected bank boxes looking for gold or silver. Imagine that. The government stealing?
Sure, if you don’t mind a little construction work. Floor safes below the lowest floor would be best in my opinion because the contents are more likely to survive a fire. But they must be waterproof or a flood could cause damage.
Otherwise I think a big, thick metal safe is good, even if it’s out in the middle of the floor, because the big ones are almost impossible to move quickly and without causing a huge commotion. But they can be expensive.
Even a “gun locker” is better than nothing. It’s a thin steel cabinet but even so it would be impossible to break into one without making a lot of noise. Also, they can be bolted to the wall from the inside, so it’s nearly impossible to move one without breaking into it first. They’re pretty inexpensive too.
Greg,
Has anyone mentioned or considered any and all derivatives in this scenario?
Thanks Greg for honesty,integrity and truth!
Godspeed blessings of peace and safety over you and your beloved~
Kevin
Kevin
I believe the “Wall Street in the Know” understand where the line in the sand is with interest rate derivatives.
Traders Place Massive Bets That 10Y Yields Tumble To 2% By February
http://www.zerohedge.com/news/2016-12-21/traders-place-massive-bets-10y-yields-tumble-2-february
Don’t know much about them but have read most of them are linked to interest rates and would be vulnerable to going super nova when rates rise.
Greg, great interview. Mr. Pento is a very knowledgeable and a straight talker.
time to take advantage of the fire sale on precious metals!
GREG: You and Mr Pento speak of\ “emerging markets “. Who or what are , emerging markets??
Markets in places other than the Western world such as South America and Africa and Indonesia.
Greg
Pay attention to the war-of-words going on right now between the upcoming Trump administration & China. Wars always begin with words. Mr. Trump obviously has an axe to grind with China, and in some respects that position has merit. This also presents in interesting situation vis-a-vis Mr. Trump’s interest in normalizing or improving relations with Russia, and how that would fit (or not) with the existing strengthening relations between Russia & China, both economically and militarily.
Regarding China’s gold: ‘War-gamers’ in the U.S. already have a scenario involving China, gold, re-monetization, re-pegging, ‘weaponization’, etc., mapped out. Whether or not they have a solution, the average Joe won’t find out until it plays out. I would surmise that China is holding the gold-Yuan-peg as a ‘last stand’ if the U.S. pursues trade policies that would put China’s economy – and by extension, the communist party itself, at risk of dissolution. A move to revalue/re-peg the ¥uan to gold would undoubtedly be considered an act of war by China, as the economic circumstances for the West in general could be catastrophic.
Strategically speaking, it would probably be wise for Trump to unilaterally end the sanctions on Russia during his first days in office. Militarily – and by extension, economically, China can only do damage to the U.S. with Russia in its court. Re-gaining Kremlin cooperation is key to having the negotiating advantage with China.
Agent P
Good analysis.
Can Trump unilaterally end the sanctions with Russia? It was congress that imposed these sanctions. I am sure the Don may attempt to improve relations with Putin and company but China and Russia have a good thing going right now and the Silk Road Economic Belt is an attraction that should keep it that way for a very long time. I not sure that Trump has any chance at all of breaking the two up, in the slightest, at this time. Just my opinion, here.
Regarding the China Gold card, I tend to agree with you. I think Jerry makes some excellent points, but I think the Chinese will will be patient and try to hold their Gold cards until after 1-20-2017, assuming of course the Don is inaugurated on schedule. I’m sure they are currently using their US dollar holdings to continue to add as much physical as they can.
I agree with your theory regarding the breaking up of Russia and China Macray Its not going to happen in the near future They are too dependant on each other economically at this point and I believe they both would like to see the dollar dethroned
I agree, What is the point of Russia turning its back on China only for Trump to be replaced as president in 4 years time? At least with China the same people will probably be in charge.
The globalists are trying to make good on their threat to Trump that (“you will never be President”) … this has Trump doubling his efforts to protect himself and his family by searching for and removing any bio-weapons planted near the White House, digging up micro-nukes planted in subway tunnels near his Trump Tower and by hiring “independent security forces” for his protection … https://www.youtube.com/watch?v=AoZFGOux9bg
And this is almost to good to be true … but supposedly … Hillary, McCain and other neocons are now under “house arrest” awaiting war crimes trials once Trump gets into office … https://www.youtube.com/watch?v=DqUiUgr4B1g
And Paul, you know what they say about, to good to be true : )))
Must be the kid in me Macray … always hoping some nice guy will “tie up” lots of presents for me on Christmas … I’ll be leaving out some milk and cookies for the Trumpster just in case!!!
At some point in the interview, Greg or Michael mentioned that the fed would potentially have to buy all the US bonds issued- and that this would be game over. But this has already happened in Japan- and the game has not ended here. Perhaps someone who understands this better than I can comment on why- but my point is, if it can happen here, it can happen there.
your fan in Japan
“Konnichiwa”
I am guessing that when they refer to game over, it means that there is no way the other team can win at that point. The score is just too lopsided. There still may be some time left on the clock , another inning to play, another year or two to pretend and extend, etc. before the game is officially over, but for all intensive purposes, game over.
It is happening here. Who else is going to buy all these bonds. That was my point in a comment that I made. He does not “seem” to be accounting for manipulation of all markets. I say “seem” because someone as connected as him should know.
You nailed it, Al Hall. After all the Mom’s, Pop’s, Retirees and umprepared Boomers pile onto the stock market for quick profits WHAM! Gone and nothing left. The experts left in the middle of the last act, singing, Bags bulging. For the rest? Poverty, repos, repossessions. Don’t go there.
FBI Warrant For Clinton Emails Released As Democrats Slam Decision: “I Am Appalled”
http://www.zerohedge.com/news/2016-12-20/judge-releases-fbi-warrant-weiners-computer-left-blasts-lack-probable-cause-i-am-app
And this
Clinton Attorney Blasts James Comey’s “Extraordinary Impropriety” In Seeking Warrant
http://www.zerohedge.com/news/2016-12-21/james-comey-comes-under-increasing-pressure-angry-dems-hes-republican-operative
Watchdogers think about this. You need the above NOISE to justify a blanket pardon from current POTUS for Hilary and possibly others. I’m pi**ed this has been started prior to 1-20-17. All criminal investigations of Hillary cease with a blanket pardon forever. I still believe that the current POTUS and Hillary are tied at the hip on many things and that Hillary can destroy him if she is indicted. If I am correct here, then watch for the HILLARY PARDON.
Jesse Jackson Asks Obama to Pardon Hillary Clinton
http://townhall.com/tipsheet/justinholcomb/2016/11/17/jesse-jackson-asks-obama-to-pardon-hillary-clinton-n2247174
What does old JJ know???
Did Bin Laden die in 2001?
http://www.paulcraigroberts.org/2013/11/20/bin-ladens-obituary-notice/
https://duckduckgo.com/?q=picture+of+whitehous+watching+bin+laden+taken+out&t=h_&iax=1&ia=images&iai=http%3A%2F%2Fmedia-cache-ec0.pinimg.com%2F736x%2F24%2Fba%2Fb1%2F24bab119520f17a86853c5248b511d29.jpg
I’m pi**ed this has been started prior to 1-20-17
I meant to say INTENTIONALLY started prior to 1-20-17
But what if Obama is also being held under house arrest (based upon “new evidence” his birth certificate is false) and thus he no longer has the Presidential authority to give Hillary a pardon??
Great comment when Pento stated that stock market starts to sell off January 2nd in anticipation of lower capital gains tax 2017. Also, it has to fall – sell high correct.
However, I question his comments on China and it “seems” he does not account for manipulation (which is the only rational explanation for everything since Trump), and he also does not address the second reason for a worldwide dumping of treasuries. That being a Preparation for a possible reset? (first reason for dumping treasuries being the crash in foreign currencies to cover US dollar debt). So if we consider a reset on the horizon, then China will be fine given their perceived gold hoard, and it should force us to reconsider his timing of events.
Also, the unknown is whether the Fed is forced into rate hikes regardless of economic data because of the impact on derivatives as a result of rising bond yields.
Pento is mostly right IMHO.
Whether anyone admits it, we may already in a recession in a lot of sectors. Industrial production has had MoM declines for 24 straight months. Anyone seen CAT’s numbers ??? They’ve been in trouble during the ENTIRE so called Obama recovery.
So the FED has already started raising rates, straight dead nuts into a recession.
Check out auto sales, and inventories. GM dealer lots are once again bursting at the seams. Many of their models have 100+ day inventorys. Check out how all of them are doing plant idling. This only gets worse from here, as interest rates have shot up AFTER the inventory problems began months ago.
Now go to all of the states that had benefitted from oil and fracking. They too are sucking wind on the economic front. Sure consumers are suddenly optimistic, but that might only be due to a change in President, since everyone knows how horrible Obama has been, and so they probably figure Trump is somehow a godsend. (i.e. even a 5 year old could do better than Obama).
So yeah, Pento’s prediction of waiting until after Jan 1 for stocks to fall off a cliff, is probably a good spot for that to occur. Yellen is a smellin’, as she damn well knows the moment Trump is in office, her days are literally numbered. Trump is going to blame her like nobody’s business for the disaster that will unfold on Trump’s early watch.
The only thing Pento didn’t say, is that gold could actually fall a lot further, and I don’t think he wanted to mention that, but that surely is why he sold. I mean why sell if there is only going to be a short term, and not big decline ? usually gold craters a lot before stocks do, which is what happened pre-08 market crash, so I wouldn’t be surprised if Pento is thinking gold could go below $1000, or maybe even below $800, which at that time he will buy it back. Notice how he kept saying IF YOU ARE LONG, LONG term holder of gold, not to worry. Later he backed off a bit, bc he knows Greg’s audience. After hearing what he said about bonds, interest rates, and the deficit, I think we could see gold go sub $700 in Q1 of 2017, meaning yeah it will probably come back big, but that’d be after a pretty big fall. Bitcoin is going crazy high right now, up over $830, when it was not long ago it was around $605. That’s what bothers me about gold, is that for all intents, both gold and bitcoin should be tracking each other, and they are not. Very troubling. Bitcoin therefore smells the coming market carnage, but gold is being smashed down.
2017 still could be a good year for the economy, but maybe not so much for bonds. In fact, industrials and manufacturing could really recover next year, while other sectors go down.
If the Comex and LBMA fail due to the rejection of non deliverable paper gold investments as part of the bond ponzi scheme, how will the price be determined? The outcome of the war on cash and gold will have impact but it appears the Shanghai market may become the new source for establishing the daily gold price. India is a fluid situation but some dimwit politician is not going to change the Indians penchant for gold.
According to Michael Pento;
“Emerging markets are crashing,” except for Russia, whose market is up 25% so far this year.
“Emerging economies and currencies are crashing,” except for Russia, who currency is up 14% against the mighty US dollar this year and whose economy is forecast to grow in 2017.
“This epic worldwide bond bubble has over $14 trillion of negative yield debt,” except none of that is in Russia.
“There’s a record amount of debt worldwide,” True for the world but not for Russia, whose debt to GDP is around 19%.
Savers in Russia can get 7-8% on their savings in the bank and the fact that the banks can AFFORD to pay this rate of interest, which would bankrupt banks in other countries, testifies to the strength of Russia’s economy. Billions of dollars in foreign investment are being pumped into Russia at present.
I agree with what Michael Pento says about the disastrous situation the world is in today, but Russia stands alone as the exception. Despite the anti-Russian mantra being broadcast around the world, wise investors know to follow the money and that money is flowing into Russia today, sanctions be damned!
Jim Rogers latest take on the mess were gettin ourselves into.
Shades of 1914 and more!
https://www.youtube.com/watch?v=WWA_014kg48
Greg…a great listen…James Dale Davidson… Times to fold , Times to run…Obama economy a complete fake,U.S. using more energy today than in 2000 so where is the growth? Less corporations so who is doing the hiring? …and NYT is but like Pravda before Russia collapsed !
https://youtu.be/ytm3ppFCRXA
Greg
There is an easy way to stop the AU and AG manipulation. All the CFTC has to do is require anyone shorting more than say 5000 oz to put up physical as collateral. But that will probably never happen. So it has to be done the hard way by us deplorables. Keep buying the physical and when the supply is gone prices will sky rocket. It will be a hard fought battle but we will win in the long run.
Merry Xmas to all and have a good fight err night
Dan
Hey Greg, I understand that Mr. Pento is an incredibly brilliant economist, etc. etc. However i do believe you should have pressed him on any personal holding of any physical Gold Coins or Bars that he holds in his own portfolio. I do not believe i have ever heard him claim to own any Real Gold as opposed to paper Gold. When you did ask him if he thought he would be able to get his Gold back that he sold, he paused and said well, i believe i can because i am an active manager…..and as an active manager, his job is to make money for his clients. Hence the big problem. I would also have pressed with a question, “How would you actively manage your way through a banking holiday? My point here Greg is that Gold is something you either own or you do not own because once the Banking Holiday occurs, it is……… GAME OVER. I just feel Mr. Pento, as a student of economic History, should make it clear that there is no substitute for the real thing. Cheers…..
Greg,
I believe that this is a beta test for what may be coming here in a few weeks.
http://www.express.co.uk/news/world/745537/Berlin-attack-terror-Christmas-markets-war-angela-merkel-afd-marital-law
The globalist have multiple options available to them to install martial law at a time of their choosing that is not limited to cyber attacks or terrorism. I fully anticipate that before the system is allowed to collapse or “reset” an event of some type will proceed it. My cousin (who had deep ties with the DOD) told me several years ago before he passed away that he had seen plans to ring all the major cities into camps in the event of martial law. At the time I thought he was a crackpot. But now after watching multiple malls being built, with what appears to be guard towers, on the outskirts of several major cities, I’m not so sure. Have you ever noticed how a bypass rings a city? It would not take much to form chokeholds and set up barbed wire. It may be conspiracy theory, but we thought gold manipulation was conspiracy theory too until Deutsche Bank spilled their guts.
This should remove all doubt about what the globalist are intending to do. As the attacks continue across the globe President Obama blocks registration of Muslims. But yet the government has unfettered access to my private information, and monitors my cell phone? Some days I think about renouncing my citizenship and coming back in as an illegal alien. They have more rights than we do.
https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-30885.pdf
Sounds like a true ” Pump and dump” scam. Somebody saying buy gold awhile they clients are selling. What’s wrong with that picture ?
Doug,
Managing money and holding a core position in physical are two very different things. Pento lives and dies on year-over-year percentage increases for clients. Remember he is actively managing money to generate profits. Core asset holders can just hold their insurance which never expires. This is NOT “pump and dump.” Merry Christmas!!
Greg
Is Mr. Pento taking into consideration that the dropoff in new home starts (residential real estate industry) is a seasonal and normal occurence during the cold winter months? Or are the statistics he has given us based on year-to-year comparisons? Hard to say when the Trump rally will end. Probably by the time he finishes bankrupting the country entirely, as he has done with several of his businesses…
The country is already bankrupt. Has been both financially and spiritually for decades.
Blame it on Trump though. Certainly Obama, Bush I & II, Clinton, and the federal reserve had nothing to do with it.
Mr Pento asks WHO will buy up the US Treasury bonds now that major holders are selling? Well, there’s trillions in 401k’s, IRA’s and other retirement savings plans. An easy target for Congress. The government could require a portion to be invested in US bonds by eliminating the tax exempt status of the funds. And voila, plenty of buyers for the stinky US debt paper as the current debt rises to over $30 TRILLION!
I just received notice from Social Security. My social security benefit “will increase by 3/10 of 1 percent in 2017 because of a rise in the cost of living”. See, they have inflation under control.
Note to self: Add ssa.gov to my Fake News sites.