As Rates Spike Bubbles Pop – Michael Pento
By Greg Hunter’s USAWatchdog.com
Money manager and economist Michael Pento warns the era of super low Fed manipulated interest rates is coming to an end. This is big trouble to the bond market and the overall economy. Pento explains, “I think what’s happening now is about 35 years of government manipulation of markets is about to end. The faith that we have in our government and the faith that we have in our central banks is coming to an end. As evidence of that, the 7-year note auction was the worst auction in U.S. history. . . . It just goes to show you the faith in our bond market is eroding.”
Now, we are facing multiple bubbles as opposed to just the sub-prime crisis in 2007-2008. Pento points out, “So, we have another bubble in real estate, but back in 2007, all we had was a bubble in real estate. We really didn’t have a massive bubble in the stock market. The total market cap to GDP was only 100% back in 2007. Now, it’s 191% of GDP, and, of course, you have a massive bubble in the bond market. You have $15 trillion in negative yielding sovereign debt and a U.S. Treasury at .3% in March of 2020. So, we have a triumvirate of bubbles that are all held together by this artificially low interest rate. Here’s the catch 22. . . . We are sending more checks to people, $1,400 checks in Biden’s Covid relief package. So, we are monetizing debt. We are creating inflation. If you continue to print money, borrow money and monetize that debt, inflation is going to wax higher and higher. You are going to blow up the bond market. If you blow up the bond market, you will blow up high yield, you will blow up credit, you will blow up the real estate market and then the stock market. If they stop, the only buyer of U.S. Treasury bonds . . . is the Federal Reserve. If they lose the bid of the Fed and it stops printing money and buying . . . rates spike . . . and then you see a massive deflationary bubble from a massive fiscal and monetary cliff. It’s game over either way, and that’s where we are now. If you keep printing and keep manipulating markets, you have a bond market crisis. Stop printing, you have a deflationary crash of asset prices. That’s it, that’s where we are headed.”
When is this going to come undone? Pento predicts later this year and points to the third or fourth quarter of 2021.
Pento says, “This is a very fragile economy. . . .When you see the credit market freeze and these zombie companies can’t issue new debt, and borrowing costs go into double digits and companies start closing the doors and laying off people and you get a massive depression that follows . . . what is going to be the solution from the central banks? . . . . The Fed can’t lower interest rates. They can only increase QE (money printing). How do you bail out an inflationary crisis in the bond market by creating more inflation? That’s the problem.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with economist and money manager Michael Pento.
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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.
As always, thanks, Greg.
Of all times to have a bunch of idiots running things!
No kidding, we got away with having a bunch of idiots running things in the 90s, but that was a different economy, structurally.
Your best interview for the decade Greg!
I think I’m confused….wait…..maybe I’m not.
Pento said the Fed has never before done yield curve control. But they (and the BOJ) actually have:
“Examples of YCC Programs:
During World War II, massive borrowing by the U.S. federal government was necessary to fund the war effort. However, this threatened to send interest rates soaring, making such debt increasingly more burdensome to service. In response, from 1942 to roughly 1947, the Fed successfully kept the government’s borrowing costs down by purchasing any government bond that yielded more than certain targeted rates (i.e. YCC).
More recently, the Bank of Japan (BoJ) shifted in late 2016 from a policy of QE to one of YCC, in which it sought to peg the yield on 10-year Japanese Government Bonds (JGBs) at 0%, in an effort to stimulate Japan’s economy.”
Also, Mike Pento and many others often say things like: “the Fed is trapped” or “they have run out of ammo”, etc. in regard to what monetary policy is able to accomplish. I’d like to believe that but, unfortunately, they have complete control of the “markets” . They are the Murder, Inc. of central banks.
The Fed WILL buy equities, a la the BOJ, when it becomes necessary.
George,
Agreed.
I wander whether they already are secretly buying equities (after all, this is about “national security”). Furthermore, we shouldn’t assume their policies are intended to be benign. IMO, we need to assume that, like us, they know where their policies eventually lead, which is economic collapse and civilizational catastrophe . . . if countervailing forces are not quickly marshaled, perhaps via a coalition of States that refuse to commit suicide by Executive Order.
Well you best keep your eye on old Stagger Lee then.
The Central Bank is orchestrating a world war (US and allies vs China and allies). If the United States loses the war, US assets will be used to pay down sovereign debt and war reparations. Central Banks worldwide have no intention of paying down debt. It is not part of the plan.
I’m sorry to hear the Naples home was snatched from him. Naples is a very nice area, I use to live there, but it got a lot busier which is why I ran to NE FL.
Naples has many financial firms so I can understand why he wants to move there.
In this time, if you want a house, just buy it or it will get snatched up!
There was a time back in the late 70s where Gold and Interest Rates were both moving up so I’m sorry, I don’t buy the interest rate scenario, rather the manipulation scenario seems more plausible. GOLD WAS SUPPOSE TO BE AS HIGH AS BITCON BY NOW!!!
I agree with Pento about Bitcoin, it was suppose to be the competing currency instead it became an ultra-wild speculative commodity having as much worth as tulip bulbs. Yes, I know there are miners out there spending enormous amounts of energy decrypting more bitcoin and facilitating transactions but he is correct, the time it takes for a transaction to authenticate is enormous in comparison, making it slow and cumbersome, that’s not worth anything when you compete with a currency that is much faster and accepted everywhere.
Coinbase is the dollar/bitcoin gateway, take it down and bitcoin will be reduced to what it was, a gamer’s currency worth fractions of a penny.
Bitcoin is a worldwide series of nodes, computers, satellites and more.
You take away Coinbase in the US and other exchanges all over the world will fill the demand in a matter of days. There are nearly 200 countries in this world and a small country with coin exchanges has as much power with Bitcoin as the US or any other big player. – JK
Al you should really not talk about BTC if you don’t understand it’s purpose and how it works and why it was invented. Read a book called the bitcoin standard that will help you understand why BTC will be the value transfer of the worlds and personal assets someday. Good luck.
Great interview Greg, so much information to process. Just a suggestion, on all the guests you interview ask them how they would invest a $100,000 ? What portion would be allocated to individual stocks, treasuries, bonds, EF tees, gold, silver, dividend paying Stocks and cash. I I appreciate all that you do Gregg keep up the good work.
PS: If there is anyone out there that thinks we’re wrong about Bitcoin then I ask this question… When did Bitcoin start moving up? Remember Mount Gox before it imploded taking Bitcoin’s price with it?
If there is no gateway from Bitcoin to Dollars then Bitcoin cannot be worth Dollars meaning it’s worthless!
Again I state, by now Bitcoin was suppose to be accepted in any transaction, it’s NOT! . .. and don’t get me started on a Sun CME X flare hitting the Earth (overdue), forget the Internet, your damn new car won’t even start! The ElectroMagnetic Pulse will fry most electronics. The only moving vehicles would be Military or older diesel vehicles.
Hey Al,
Regarding Bitcoin, it really doesn’t matter if the transactions are slow. Bitcoin is a place to store your inflating fiat. It’s decentralized (unlike a Fedcoin would be), limited in supply (unlike a Fedcoin would be) , and transactions will be getting faster with the Lightening Network. Technology is always improving. So you don’t think gold and silver is combersome for hundreds of millions of dollars of international trade transactions? You can do that with Bitcoin in a matter of minutes. In the years to come, Bitcoin will not be used to buy a cup of coffee, it will be a store of wealth, used for international trade, and corporate transactions. People will be using other crypto, such as Litecoin, Dash, or maybe even Fedcoin for everyday purchases. By the way, there are many more exchanges other than Coinbase. And, when you purchase your crypto you remove them from the exchange and send it to your own wallet. If you don’t hold it you don’t own it – just like your gold and silver.
And, will the Government make Bitcoin illegal? Did the Government make gold illegal at one point? Will they do that again? Well, you better not buy any!! What if??? It was just recently approved that banks can now offer crypto custody services. The crypto and blockchain infrastructure is being built and is the future of the financial system. If anything, there will be more regulation of crypto rather than making it illegal.
If we have a solar flare, EMF weapon, or an asteroid hit the earth and the electrical grid goes down along with the internet then we are all in trouble. Most of humanity won’t make it for long even if you had invested all your fiat in gold and silver.
Respectfully,
Lawrence
You miss the point- why you are questioning cryptos and yes they may be eventually banned, you are missing out on actually making money- trade em and stop the mind rambling , Gold and silver are not going anywhere, see a trade take it.
Al – that is why I recommend owning a Yamaha 360 1972 enduro – No modern electronics per say, and will survive any electromagnetic pulse (Nuc or sun) … plus great gas mileage and fun to drive. Note I am impartial to 72 – my first one! And if you have to get out of Dodge fast with what ever is on your back … this be the one! And a hell of a lot funner then a bitcoin (343f#$3f%#$eSWRF…… ….. vs . http://www.bikesrestored.com/15134/yamaha-rt2-360-enduro-1972/yamaha360-1972-3/) yep – not a hard choice!
Freebrezer,
Very cool choice!
Greg,
It’s all connected.
https://www.fxstreet.com/analysis/the-great-reset-is-coming-for-the-currency-202103021900
The same players that planned the pandemic, are.the same players that will be engineering the reset. They know the current system is toast and that’s why they don’t care about debt. The markets are rigged top to bottom, so don’t waste time looking at charts.
jerry; ( :
Jerry;
This is from KIRBY ANYLITICS, IT IS LENGTHY BUT HE GETS TO BREAD AND CIRCUS. SORRY FOR THE LENGTH.’
“The plandemic was [conveniently or coincidentally, take your pick?] “dropped” because we are on an exponential, vertical growth curve for money which had to be created – due to the magic of compounding – before we ever had a “virus”.
plandemic1
I would like to now remind EVERYONE of a piece I penned back in August of 2018 where I did write in a piece titled,
Big Money and the Big Lie:
“The important take-away from the picture above is that the US dollar is now on the vertical growth part of its “life curve”. Naysayers might argue, “money growth is not increasing at a vertical rate because the Fed stopped QE [Quantitative Easing] a number of years ago”.
Perhaps the Fed did “technically” stop QE a number of years ago, BUT, the folks at the Fed are well aware of the facts regarding the life cycle of fiat money depicted above. They know if the money is not created, the financial system [US Dollar] collapses onto itself. So what gives?
Connecting Dots
Instead of the vertical nature of the money growth chart above, the Fed would like us to believe that money growth is better reflected by their more sanguine “official” count depicted below:
plandemic2
Do remember folks, the chart above reflect the “officially acknowledged money supply”. The growth rate does not appear to be vertical, does it?
But what about the fraudulently created, missing 21 TRILLION identified by Dr. Mark Skidmore [PhD. Michigan St.] and Catherine Austin Fitts [former undersecretary of HUD – Bush 1 Admin]? This money is not acknowledged to exist and IS NOT part of the official monetary aggregate data depicted above. If one was to “add” the missing 21 Trillion to the 16ish Trillion depicted above – the growth rate would INDEED BE VERTICAL.
So folks, while the Fed may be able to legally claim that QE ended years ago, the REQUIRED monies have been created and they have been silo-ed in places like the ESF [EXCHANGE STABILIZATION FUND].
“The U.S. Exchange Stabilization Fund was established at the Treasury Department by a provision in the Gold Reserve Act of January 31, 1934. 31 U.S.C. § 5117. It was intended as a response to Britain’s Exchange Equalisation Account.[2] The fund began operations in April 1934, financed by $2 billion of the $2.8 billion paper profit the government realized from raising the price of gold to $35 an ounce from $20.67. The act authorized the ESF to use its capital to deal in gold and foreign exchange to stabilize the exchange value of the dollar. The ESF as originally designed was part of the executive branch not subject to legislative oversight.”
The web page devoted to the ESF claims that it contains only roughly 100 billion US dollars but then again, it is NOT SUBJECT TO LEGISLATIVE OVERSIGHT, so who really knows? We also know that the ESF was created to protect the dollar. We also know that 21 Trillion US dollars are unaccounted for. We also know that money growth matter-of-factly is greater than what is reported – because it MUST BE. It is not a stretch to figure the existence of this “dark money” is the real reason why US Government Bond auctions have NEVER failed, despite the reluctance of America’s traditional financiers to purchase record amounts of additional US government debt.
So folks, while the Fed may be able to say they are not directly engaged in QE, the US Treasury [ESF] IS and has been for some time – because they MUST. Additionally, the Fed necessarily was complicit in assisting the ESF in creating the dark money.
This is why the Fed will never be audited and this is also why,
“In an apparent departure from ‘generally accepted accounting principles,’ federal agencies will be permitted to publish financial statements that are altered so as to protect information on classified spending from disclosure…
It’s all part of the BIG LIE, ladies and gentlemen.”
A reminder ladies and gentlemen, this [above] is what I wrote back in August of 2018. Now, as everyone knows, the have been multi-trillions of dollars committed and created in response to the Pandemic crisis. Coincidentally, if you believe in coincidences, 4 months after publishing the piece above [Jan., 2019] I was hospitalized in critical care for 5 weeks with a mysterious respiratory ailment [double pneumonia and blood clots on my lungs] that presented EXACTLY like Covid-19. I was lucky to have lived.
Without a virus, humanity would NEVER have put up with this kind of money creation. Now that the bogey man has appeared and everyone is in “lockdown” in their homes – they want to be paid and will not only tolerate but are WELCOMING the money creation – so long as the fridge is full and Netflix keeps working – the modern day equivalent of bread and circus [Coulisse anyone?] of Roman times. We even have the modern day currency debasing equivalent of coin clipping occurring – excessive money printing – showing that while history doesn’t necessarily repeat, it certainly does rhyme.
Allen,
I’m glad you’re o.k. The virus is real, but the pandemic is not. If you recall, prior to the pandemic, there was demonstrations in England, France, China , etc. The globalist used the pandemic to restore control. The demonstrations were a symptom of monetary breakdown. You were right about your predictions back in 2018, and you are right, about your predictions now. The second wave of the virus will be used to clear the balance sheets. The best way to eliminate debt, is to get rid of millions of people who are living off it. Bread and circus = Agenda 21 .
The move is on to portray true believers as enemies of the people. This propaganda piece shows where this will be ending. True believers who don’t take the vaccine will be labeled as the enemy.
https://frenchpress.thedispatch.com/p/the-spiritual-problem-at-the-heart
The deception. The majority supposedly are taking the vaccine. It is a spiritual problem now if you don’t take it.
Don’t take the vaccine. No matter what.
Eddie,
Shhhh. Don’t tell anyone, but life insurance companies won’t pay for deaths caused by the coronavirus vaccine.
https://mbncnews.com/coronavirus-vaccine-deaths-arent-covered-by-life-insurance-because-jabs-are-experimental-medical-intervention-naturalnews-com/
I’m assuming since the injections are experimental, health insurance companies may not be paying for care either down the road when people get sick? But then again they could call it something else. Just the reverse of COVID-19 where every condition is COVID.
eddiemd,
You say don’t take the vaccine?
Don’t play the game of Satan’s Poker?
“The only winning move is not to play.” (War Games – 1983)
Operation Vaxx-All Deplorables: Codename; “Satan’s Poker”
https://www.unz.com/mwhitney/operation-vaxx-all-deplorables-codename-satans-poker/
More deception propaganda being promoted as authentic. AP is a mouthpiece outlet for the NWO and CCP communists.
Found on the leftist Drudge site.
https://apnews.com/article/capitol-siege-donald-trump-washington-elections-only-on-ap-8e6ddb336b23d1813b18e8932f321e40
The war on truth is moving quickly. The genocide is coming. Pol Pot style.
Greg,
Did you see the dead cat bounce in the money velocity chart?
https://fred.stlouisfed.org/series/M2V
All the money printing in the world cannot stop what’s coming.
Enjoy whatever time you have left in candy land. Fraud and deception is all that’s left.
100%
Ice age farmer. First time I have heard of him.
His video adds to the WEF plans for a worldwide cyberattack in Klaus Schwabe own words. Supposedly worse than coronavirus.
http://www.thetruthseeker.co.uk/?p=227308
The thief will come in the night when you least expect him.
Jerry,
I remember your suspicions about Biden.
MARTIN ARMSTRONG:
Can They Put Fake Biden’s on to Address the Nation?
A number of people have asked will they create a double for Biden after his last address being so out of touch? The scenes from Mission Impossible where they have masks that make them look like different people…
https://www.armstrongeconomics.com/international-news/politics/can-they-put-fake-bidens-on-to-address-the-nation/
I think you and others here hit the nail on the head, Jerry. The deception is so pervasive that every Chinese hacker’s wet dream is now a reality. Mr. Global’s lawlessness is so complete that there’s no worldly place of safety–you heard it in Mr. Pento’s frustration over where to flee. The mammon master devours its devotee. Our Lord warned that silver and gold are no havens and it’s a sure bet that cryptos fall into that category. I pity those with fiduciary responsibility to shepherd their clients’ investments to growth or safety–it’s an exercise in futility. Maybe if you’re one of the financial priesthood you may be able to squeeze some blood out of the sheep by your millions, but at what cost, to whom and to the future? Chris Dwayne and Catherine Austin Fitts are right that wealth is in the local communities you invest your treasures in. “Lay not up for yourselves treasures on earth where moth and rust corrupt and thieves break in and steal. But lay up for yourselves treasures in heaven…” I.e. in PEOPLE, who are eternal. “Seek first the Kingdom of God and His righteousness and all these things will be added unto you.”–Jesus the Deliverer. Go long on the living God!
I’ve seen Mike Pento on the Max Keiser Report many times over the years, and he has always said to buy precious metals for this implosion of empire.
Now lately, he says to also buy Bitcoin.
Save yourself and tell your friends.
It’s time to put up and quit playing victim, as there IS a way out for you.
Every time i read usa watchdog is neither this that or the other i get a good laugh,knowing gregs Truth and ability to seek knowledge and wisdom from guests and allowing them to bring there ideas based on experience We know the following of folks arent BLM or Antifa for starters.Best interviewer for non-biased info online,no wonder he lost a job reading a script for mainstream media,been listening to Greg over 10 years,class act and guest are tops in there fields.
I get Rubles as fast as I can from any $’s I receive. Even being 100% in Rubles is no guarantee that I will escape any loses when the SHTF because most banks are already or will be bankrupt. Since last year, Sberbank in Russia let’s their people buy Gold and Silver and carry it out of the bank. Silver coins are 31.1 grams each or one ounce where the Gold coins are 4 coins equal 31.1 grams or 1 ounce. The Gold coins are packaged so that you can get six packages or 300 coins in your one hand. If you buy coins instead of the bars, you don’t have to pay the VAT which is just over 20% more. Would like to pick up some more Silver coins but will wait to see how things go the rest of this year. Gold was fairly cheap this last week. Now if I could only find a way to cash my stimulus checks from the US Treasury. The US banks won’t accept an endorsed Treasury check and you must appear at a US bank in person to open a new account. It appears that I’m screwed as it’s impossible to make contact with any Treasury officials to get them to send me a wire transfer and it’s not worth the cost of the trip to go to the US.
I PREDICT IT WILL BE AN INTERESTING SUMMER.. god help us
I say we do not owe the federal reserve. They never had the trillions they say have lent the govt. The govt printed fiat backed by a bond, we were neve loaned the fiat.
If I am wrong, show me where the federal reserve got the fiat , the govt had to print.
The federal reserve owns paper iou.
The never had the fiat to lend.
Pento has an outstanding vocabulary, and always has an interesting perspective on investing and the economy.
There will be pain & bloodshed before we get our freedom back from the Globalist Oligarchs. Great to see you Greg and thanks for all you do.
Activist Milo Y is now ‘Ex-Gay,’ consecrating his life to St. Joseph
he says .
Secular attempts at recovery from sin are either temporary or completely ineffective. Salvation can only be achieved through devotion to Christ and the works of the Holy, Catholic and Apostolic Church.’
I think he already believed in God .
Now he is born again thru the power of the Blood of Christ .
The angles are singing in haven Praise God .
Pray for him to have strength because you know satan is mad .
Forget about the Catholic thing .
If he is in Christ he is a brother .
The baptist or Pentecostal or what ever other handle satan uses to
separate the body of Christ .
God is going to bring the sheep together in these days and do away with
Man made things .
Help him father God in the name that is above all names Jesus Christ .
AMEN .
Near the end of the interview When Greg asked mr. Pento again about gold and silver he when on a long winded dodge to completely avoid the topic. Very strange. I used to think he was a straight up guy. Maybe not.
John,
At 22:35 Mr. Pento explained very clearly his position on gold and silver. He is an active manager, and adjusts the portfolio as he sees fit. In his previous interview here, if I recall correctly, he had 10% of the portfolio in gold.
Pento has been eating too much Scungilli and Mushroom Risotto. Same old song & dance.
Stan,
Maybe it’s the same problem only bigger?? We all get tired of you telling us you are shorting old since $1,200.
Greg
Greg: I still have those short positions. I’m not worried one bit.
Stan,
This chart from the fed on money printing says you are wrong: http://theeconomiccollapseblog.com/wp-content/uploads/2021/03/Snip20210310_224.png
Greg thanks great interview, just one question is Pento bullish on Gold 3q June and does he see gold Price increasing significantly later part of 2021?
Best Regards,
Steve
Stan,
Mushroom risotto?
It is highly unlikely that Mr. Pento to would eat that, as it’s a specialty of northern Italy, and his family lineage is definitely from southern Italy. He would most likely prefer a plate of eggplant parmigiana, and so would I.
Lets assume the Fed stops printing fiat dollars … will all the inflation plays crash? … gold demand (which is basically a monetary asset) may stagnate … but not silver … silver should continue to rise .. simply based upon the worldwide industrial demand for silver … look at all the solar panels being built by China … https://www.unz.com/wp-content/uploads/2021/03/FredColdWar-5.png … China’s share of global electricity “generated by the Sun” has jumped from 2% in 2010 … to about 40% in 2021!!
Also … just because Treasury rates rise does not mean gold will fall as Pento assumes … if the “real” inflation rate is 4% higher then the 30 yr bond rate (as Shadow Stats tells us it is) … then gold can continue to rise (just like it did in the late 70’s when Paul Volcker had to push rate Treasury rates up to almost 20% to stop gold from rising)!!
As for the stimulus checks Pento says the government can’t continue to issue … not continuing to issue them “is criminal” … because the CPI as reported by the Bureau of Labor Statistics (BLS) is a charade … both the BLS and the Fed are simply lying about the true inflation rate (which right now is closer to 10% then the reported 1.3% recently paid to Social Security recipients … these stimulus checks now being issued don’t even make up half the true inflation rate difference for most people who earn less then $50,000 per year!!
Why has Gold been going down recently? … because the dollar is strong and the Fed is going to stop printing them?? … https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_mobile/public/inline-images/bfm4BA9.jpg?itok=wYyr8Qng
Seems more like …
“The Fed, in sync with the fiction writers at the Bureau of Labor Statistics (BLS), reports consumer inflation as honestly as Al Capone reported his taxable income” …
Egon von Greyerz
https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/teaser_desktop_2x/public/2021-03/inf1.png?h=11ff998f&itok=joUpQaRP
Paul…
Too Busy Frontrunning Inflation, Nobody Sees the Deflationary Tsunami…
“Those looking up from their “free fish!” frolicking will see the tsunami too late to save themselves. It’s an amazing sight to see the water recede from the bay, and watch the crowd frolic in the shallows, scooping up the flopping fish. In this case, the crowd doing the “so easy to catch, why not grab as much as we can?” scooping is frontrunning inflation, the universally expected result of the Great Reflation Trade.”
https://oftwominds.cloudhostedresources.com/?ref=http%3A%2F%2F321gold.com%2F&url=https%3A%2F%2Fwww.oftwominds.com%2Fblogmar21%2Fdeflationary-tsunami3-21.html&width=1024
Love, love, LOVE Mr. Pento! We’ve been wondering when you’d have him back on – THANK YOU, Greg!
Nice to see that USAWD is still around. Guess I’ll have to come here from now on.
Pento: We have another bubble in real estate.
Soaring home prices set off alarm…
https://www.politico.com/news/2021/03/08/soaring-home-prices-alarm-policymakers-474433
South Florida Market Red Hot, Realtors ‘Never Busier’…
https://miami.cbslocal.com/2021/03/08/south-floridas-real-estate-market-red-hot-a-year-into-covid-pandemic/
Hi JC,
Is it just me, (?) but something about soaring house prices – in the midst of C19 lockdowns, restaurant closures, etc., etc., and record unemployment – seems odd. I don’t know how house price stats are gathered (someone on this site can no doubt advise me) but it seems possible that house price stats are based on actual sales – contracts signed. If, as widely reported, people are leaving ‘blue’ states in droves and flocking to less restrictive ‘red’ states, then lots of home sales contracts are being concluded. Reportedly, up to 90% of commercial real estate in NY city is vacant while people are forced to work from home or take extended furlough, restaurants and theatres are closed, shops are boarded up. What happens to demand for residential property in such a city? What of the many homes up for sale in those restrictive ‘blue’ states that can’t find a buyer. Those deflated property prices will not be the subject of a completed sale contract. Does that mean that the deflated asking prices are not reflected in the national house price stats? I don’t know the answer. Just posing the question, because a property boom in the midst of the C19 lockdown-induced financial collapse seems . . . weird!
Andrew,
Re: “Whether housing price statistics are reflecting reality”
Great question.
As I recall from the previous housing crisis a decade ago, potential sellers were highly reluctant to lower their prices. It took several years for actual sales prices to reflect the debacle that had taken place.
This time, certain “sanctuary” destinations such as Florida actually are experiencing a building boom in new construction and residential housing and the prices there reflect reality. If I had to guess, it would be that prices in New York (and other places from which people are fleeing) are not yet reflecting what has happened there.
Pento knows real estate is in a bubble yet he is trying to buy some real estate in Florida? … that’s like Bitcoiners’s knowing Bitcoin is in a bubble but are trying to buy some anyway … just like the people who bought tulip bulbs years ago figuring they were smarter then Issac Newton (who went bankrupt buying tulip bulbs) … thinking they can make “some quick money” and then very intelligently get out “before the bubble pops”!!
The benchmark Treasury went from 0.3 to 1.5%
Bitcoin went from $4,000 to $58,000 during the same time.
Bitcoin correlates with interest rates but not how Pento thinks.
Bitcoin has cyclical bear markets, the next predicted to start around October/November, likely the same time stocks and real estate crash and interest rates fall back to zero.
The people who spent $4000 to buy one bit coin … could have bought 200 ounces of silver with the money instead … knowing silver is now becoming so rare (it will soon be just like palladium and rhodium that are selling for between one and ten ounces of gold) … 200 times one ounce of gold at $1700 is $340,000 dollars … 200 times ten ounces of gold at $1700 is $3,400,000 (Bitcoin is now resting at only $58,000) … remember the childhood story of the race between the rabbit and the turtle … Bitcoin (the rabbit) is currently comfortably in the lead … but Silver (the turtle) that is slowly going extinct will eventually win the race … and when it wins the race gold will likely be conservatively selling for at least $50,000 dollars per ounce … 200 times ten ounces of gold at $50,000 is $100,000,000 dollars!! … and what if gold rises to $100,000 per ounce?? … at that point one fiat electron Bitcoin bit inside a computer will need to sell for more then $200 Million dollars each (to win the race against “real money” silver)!!
One big factor Mr. Pento is leaving out of his analysis is how the 2020 election steal gets resolved. He seems to be treating it as closed, a done deal. There are 10’s of millions of people that don’t agree with that thinking. That reaction is waiting in the wings and is not going away. How investment planning in that environment (cusp of revolution potentially) might just be something to consider.
Mark,
Agreed.
This is not an economics problem. This is big-time internationalist politics and 4th generation warfare.
Thanks Mr Hunter and Mr Pento.
Dr McHugh at Technical Indicator Index had been analysing the markets for many years and warned many years in advance of the 2008 disaster. Post 2008 the lies and manipulation was such that the analysis failed as did his followers. Will the liars in power not sink to new depths to gain the 0.01% asset holders and burn the plebs again? As Mao asserted in 1973 the USA has a printing machine what is to stop that printing?
BTC and its associates are a virtual prison according to Dr Austin Fitts. Try and sell any of these coins and move the proceeds to your bank and watch the trail.
Investors are basically opportunists……as much s he rails against the system, he makes moey off of it…..bank stocks etc…..he’s sleeping with the enemy…..
Very well said Jerry.If anyone had never thought of charting a Lie well just look at almost the entire dow listings as you say rigged to the hilt.I am a bit surprised on Michael’s take on Gold.The reason I say this is because whilst he says rate increases are kryptonite to Gold ,well they are even more so to financing the AAcrime’s huge multi trillion debt,this debt no one can put an accurate figure on my belief is that it is at or about $300 trillion and moving.When the M3 Money Supply figure was done away with the deficit went ballistic and of course like many other countries AAcrime has off balance sheet financing
which no one except the Fed Chairman might know and of cours would never divulge the true number. In effect AAcrime is hopelessly bankrupt and totally insolvent.
That said for AAcrime to talk about a RESET is like a Turkey and a Wolf deciding what they are going to have for dinner……..They broke the system and now they think the fix it …..What a sick joke !!!
What I think will happen is that as per the prophecies AAcrime will be struck with a major disaster and it (the financial system) will implode taking with it the rest of the world.
Now back to Michael and his current take on Gold,I wouldn’t give up on it just yet and don’t forget we still have Bo Polny with his prediction still in play.
By the way he did accurately forecast the winner of the 2021 election except the joe the the schmo and his underworld thugs stole them…..
Hi Neville,
The following is not an accusation, just an observation one could make about any financial advisor / money manager: In general, their income is based on a percentage of total funds managed / invested. As a rule, they can not make an income on money their clients choose not to invest but to keep on deposit in the bank. Similarly, since gold is money, they do not earn any income from physical gold or silver held in their clients’ personal possession. This could be seen as an incentive not to promote the acquisition of precious metals, even as an acknowledged ‘core asset’, beyond let’s say, 5% of funds.
On the other hand, Egon Von Greyerz of Matterhorn Asset Management, who’s income is derived from storing physical gold, informs us that his very wealthy clients are holding at least 25% to 50% of their investable wealth in physical gold.
Hmmm. What to believe? As usual one must become as informed as possible and make the best judgement one can – in the full knowledge that those licensed to give professional financial advice do not act pro bono.
Great Program !
Sorry Greg but Pento leaves me flat. His financial advice is pedantic at best and I’ve yet to see any one of his original thoughts come to fruititon. If you keepup with markets and understand what’s happening in the economy/Fed/bonds you would see Pento has nothing new to the mix. Read the financial pages and you’ll be way ahead of the game.
He manages $100 million plus Shirley.
Greg
Greg can you ask Rob Kirby to come on and explain to us what’s really going on with Scotia Bank no longer vaulting COMEX? Is this the cannary we’ve all been looking for?
Greg Hunter our Ultimate American Patriot 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸
Great Interview – Mike Pento is one of my Favorite of all your guests. Another wake up call – if we are not awaken by now we don’t deserve to be awake. Great Interview
I ask, “is the covid 19 SHOT developed and meant to kill off much of the population, especially the one ‘s drawing social security payments. If Bill Gates could kill all those on social security, just think, how much money would be saved by the phony government.”
A total guess would be there not gonna stop printing now as rates would rise borrowing cost increase,gov debt unrepayable and stocks would fall to true value.takeaway there gonna keep printing until the games over we dont know specifics only that its gonna be bad economically,very very bad.
It looks like Martin Armstrong called it again. He said his computer predicts the start of civil unrest and that’s precisely what’s beginning to take shape. Mask burning protest in Idaho. People are starting to wake up to the Scam-demic.
https://www.armstrongeconomics.com/international-news/disease/idaho-mask-burning-protest/
Hi Rodster,
Thanks for the link. If EVERYONE exercised their Constitutional Rights, TPTB would be rendered powerless. Individuals can be easily taken down, fined, made unemployed, incarcerated, but the masses cannot be so easily subdued.
Interesting perspective.
https://mario828282.wordpress.com/2021/02/07/introducing-666-the-great-reset-building-back-better/
They base mortgage rates off the 10 year because on average, people pay off their mortgages in 10 years.
Susan Rice. Deep state communist and Obama stooge.
In charge of the coming genocide against anyone who does not agree with the NWO luciferians.
https://www.politico.com/news/2020/12/10/biden-taps-susan-rice-for-top-white-house-domestic-policy-job-444231
When Harris takes over…the genocide will begin. So will a large scale purge in the military. Rice and her NSA insiders have already made their lists.
The thief will come in the night.
eddiemd,
Yes, IMO, Susan Rice is extremely capable, and connected to the highest levels of international power. She is, therefore, highly-dangerous.
Friends,
Do you ever get the feeling that we’re playing a game of biometric wolves and sheep? You know where the sheep hide, and the wolves try and find them, and then once their caught they put them in a pen? Well here’s the COVID version.
https://www.rockefellerfoundation.org/wp-content/uploads/2021/03/The-Rockefeller-Foundation_Accelerating-National-Genomic-Surveillance.pdf
How much surveillance is to much? Being monitored by the NSA and having you’re iPhone isn’t enough? How about having so called loving relatives rifling through your private information on line? And for what? Thought control? They already have that. Possession of private property? They have that to. If they want to get rid of us why don’t they just inject us with a poison? Oh what a minute. Silly me, they’ve done that to. Now you know why I tell you to get your spiritual house in order. Those that choose not to, please don’t come crying to me when the SHTF.
Genomic medicine: it doesn’t take a rocket scientist, oh excuse me, a molecular genetics scientist to maybe high light what the Bill Gates of this world will do with this school of scientific endeavor. Mans genetic flaw of original sin always destroys his God gifted brilliance. Therefore the needed return of Christ to save us from destroying ourselves.
Nixon was a genius. Look at the growth and prosperity that that happened after ditching that stupid Gold standard in 1971.
Umm, in 1970, one income supported an entire household, including college for the kids with no debt.
Yeah, Nixon was a genius. LMAO.
Greg,
Great interview and in general I agree with Mr. Pento. Though my question to him is what happens when the government outlaws gold, as they have in the past?
You are kidding right?
Greg
1980 Dow Jones Industrial avg 850
1980 Silver $50
2021 Dow Jones Industrial avg 32,000
2021 Silver $26
Good point. And the 1980 DOW to Gold ratio was 1 to 1 in 1980 at about $800 if I recall.
Don’t you just love out of control currency and controlled markets.
On Mike’s interview with Max Keiser on 3 Dec. 2020, he did not say “buy Bitcoin”, but he did say that he would look into due diligence, and by this interview, I wonder if he did.
Mike is always on the $ with his interviews – intelligence with humor.
Good q’s by Greg-congrats. -JK
Greg,
It looks like we are not only in a biological war, but soon to be a cyber one as well. I posted RT only because they are reporting information that our MSM is not reporting. Is there really a difference?
https://www.rt.com/russia/517714-cyberattack-government-websites-offline/
Attack and counter attacks are on the menu. By the way, our propaganda network is reporting that Russia is involved with a disinformation campaign against the mRNA vaccine. You’d think if they’re going to lie they’d make up a new story. The Russia Russia thing gets tiresome.
WHETHER INFLATION OR DEFLATION ,BONDS WILL COLLAPSE AND DEFAULT. WHO WILL BUY OR ACCEPT DOLLARS WHEN GOVERNMENT DEFAULTS. THEY WILL HAVE TOO,.HAVE TOO, BACK ALL NEW CURRENCY AND BONDS WITH METALS .NOT SDR OR ANY OTHER FUNNY MONEY. FOOL ME ONCE SHAME ON U ,TWICE SHAME ON ME. METALS WILL EXPLDE EITHER WAY. BOOK IT
I get Rubles as fast as I can from any $’s I receive. Even being 100% in Rubles is no guarantee that I will escape any loses when the SHTF because most banks are already or will be bankrupt. Since last year, Sberbank in Russia let’s their people buy Gold and Silver and carry it out of the bank. Silver coins are 31.1 grams each or one ounce where the Gold coins are 4 coins equal 31.1 grams or 1 ounce. The Gold coins are packaged so that you can get six packages or 300 coins in your one hand. If you buy coins instead of the bars, you don’t have to pay the VAT which is just over 20% more. Would like to pick up some more Silver coins but will wait to see how things go the rest of this year. Gold was fairly cheap this last week. Now if I could only find a way to cash my stimulus checks from the US Treasury. The US banks won’t accept an endorsed Treasury check and you must appear at a US bank in person to open a new account. It appears that I’m screwed as it’s impossible to make contact with any Treasury officials to get them to send me a wire transfer and it’s not worth the cost of the trip to go to the US.
In the normal course of our business, we came across a couple, who were starving, as it turns out, to death. We fed them and the woman got sick in the way prisoners, of war, got sick when soldiers fed them at the liberation of the camps. Our medical people understood how to treat the woman.
Starvation has started.
Marie,
Yikes!
Strong communities are important to surviving what’s now here, as I think you’ve pointed out before.
Sounds more like computerized ghost to me.
https://www.zerohedge.com/technology/resurrecting-dead-digitally-one-step-closer-singularity
what happend to your youtube channel?
Ahti,
I told the truth about the Election fraud of 2020, covid and geoengineering and they took me down.
Greg
50 some days of Biden and what do we know? This man could not find his way out of a closet without someone showing him the way. Every day he remains as the illegal President America is loosing credibility. Having said that there is always a solution and in this case the solution may find itself sooner rather than later. Keep the faith watchdogers the truth will soon set you free.
Not to rain on the party.
If you use “the message” paraphrased Bible, get rid of it. Now.
https://www.youtube.com/watch?v=e02SbE_gBZo
Pento is STILL lost when it comes to Bitcoin AND other Crypto currencies…
I lost respect and trust for Mr. Pento when he said you can’t use Bitcoin as a currency. Um hello? Bitcoin is a currency. You can buy anything with bitcoin. Even a Tesla car. Greg – you gota stop bringing these dinosaur’s on. Get some new people who are up to speed on current times. Not the world from 50 years past.
Waylon,
Re: Getting guests who are “up to speed on current times”
Taking a risk: I assume that you’re a lot younger than some of us. Nevertheless, I’m sympathetic with your view: for example, I bought more Bitcoin today.
But bear in mind that many of us old-timers were educated in economics and much else, are still literate in science, math and statistics, and were programming computers before you were born. Moreover, although we have forgotten much, we didn’t stop learning when we were young.
As I try to understand the minds of younger investors — I sense in them a relatively stronger trust that technology is the solution to most problems. However, I am unsure about their appreciation of complex systems, catastrophic events and tyranny (even evil) as predominate factors in human history and their continuing relevance. This, despite the thoughtful writings of younger thinkers such as Alex Newman and Brandon Smith.
Let me ask you a sincere question: How much food, water, and other preps have you acquired? I ask because I’m unsure if one of the differences between the generations is in our perceptions of the fragility and parlousness of our circumstances.
What are your thoughts?
Pento looking at buying a house in Florida now? !! This guy rubs me the wrong way…He’s saying there is a housing bubble , among all other bubbles, but he wants to buy at the peak of this market? Sounds like he doesn’t believe in what he is preaching…
He wants to buy in Florida when the housing market crashes. Try to understand what he is saying.
Would have liked to have heard his opinion on whether I sh0uld keep trying to get my house paid off as soon as possible or sell it in today’s high prices.