Economist and money manager Michael Pento has long warned global central banks would lose control and the ability to keep the financial system propped up. The waiting is over. Pento explains, “The central bank charade is over. Remember back in the Great Recession, they took these emergency measures that were going to be ‘temporary in nature.’ They are not temporary in nature. . . . The quantitative tightening program was cut short. It ended in July. . . . They were only able to take away $700 billion of the $3.8 trillion that they created. So, there is $3.1 trillion worth of base money. That’s rocket fuel of real money in the banking system, dry tinder ready to explode to a hyperinflationary crack up boom. They did it on a permanent basis.”
Everywhere you look, nations are up to their necks in unpayable debt in far greater amounts than in the Great Recession. Pento warns, “This is disabling debt on a global basis. It is profuse in China, Japan, Eurozone, United States and throughout the developed world. You cannot service this debt honestly. In other words, the tax base in the European Union, Japan, China and the United States cannot make this debt solvent. So, it has to be defaulted upon. It can be defaulted upon either through inflation or deflation. I think they are going to try both. They tried deflation. It is happening now, and it’s not working out so well. After this crash becomes completely manifest and salient, they will switch towards inflation. I mean inflation like we have never seen before. There will be a strategy to get to inflation. I am not talking about the Fed Funds Rate down to 0%. That’s not going to work. They will probably launch another round of QE (money printing). . . . They are going to have do Modern Monetary Theory (MMT), negative interest rates, ‘Helicopter Money’ and the banishment of cash.”
In closing, Pento says, “We have gone from 100% confidence in central banks in 2009 . . . that notion has been completely eradicated, eviscerated and obliterated. The faith in central banks, European Central Bank, Bank of Japan and the Fed is almost completely gone. If you want proof, look at the dollar price of gold, and look at the price of gold in all other currencies around the world that it is measured in.”
Join Greg Hunter as he goes One-on-One with money manager Michael Pento.
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.