Intractable Inflation Very Dangerous New Paradigm – Michael Pento

By Greg Hunter’s USAWatchdog.com

Money manager Michael Pento says get ready for big inflation. Pento explains, “When the emergency ended (from the 2008-2009 financial meltdown), they were going to reverse course, sell those assets back to the public and take those dollars out of the economy. . . . A funny thing happened on the way to doing that, the global economy imploded. So, here’s the point . . . the central banks have admitted, tacitly at least, they can never take away those assets. They can never drain their balance sheet, meaning they have permanently monetized this debt. Interest rates can never be allowed to rise above 0% in nominal terms and, in real terms, will grow more and more profoundly negative. That should shock investors. That is a moment of enlightenment, a watershed moment, an epiphany throughout the world. Hello investors, central banks are putting you on notice that nominal interest rates are going to be at 0% or below, and real interest rates will grow more and more negative throughout time. . . . If China cannot re-leverage its economy for explosive growth, and central banks are extremely fettered with their ability and means for which to stimulate economic growth immediately, I would be cautious about buying this rally, which I am. I think we are going to have one more sharp downturn in the equity market . . . and then, here’s the sad truth, you have to go massively long inflation hedges.”

This brings up top gold and silver for protection against the coming money printing and inflation. Pento explains, “These currencies will collapse against precious metals as they did in Rome. Prices will go a lot higher as they did in Rome. . . . When people lose faith in a currency’s purchasing power . . . this is why gold has had spectacular three month rally, and I expect it to continue after a little consolidation here. . . . The debt has been permanently monetized across the globe. That’s pretty scary. If we are all headed in the same direction as Rome, that is pretty frightening. . . . Central banks have messed up for lack of a better word. They understand that they control the entire global economy. They control all asset prices, and they can never step away. That should scare everybody.”

In closing, Pento gives his simple economic road map. Pento says, “We’re going to have one final whoosh down in stock prices and in the economy. That’s going to bring Jerome Powell (Fed Head) back to 0% interest rates and back into QE (money printing), and then it is intractable inflation for as far as the eye can see. That is going to be a very, very dangerous new paradigm for the world. We are all going to look like Rome. Real interest rates will be falling, and that is rocket fuel for gold.”

Join Greg Hunter as he goes One-on-One with money manager Michael Pento of Pento Portfolio Strategies.

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After the Interview: 

Pento also points out that the “non-financial” debt in the USA was $33 trillion in 2008. Today that same “non-financial” debt has ballooned to $51 trillion. That’s an $18 trillion increase in just 11 years. Pento says this is yet another sign that inflation will have to be pushed, and the default will be through massive inflation.

There is much free information, articles and videos on PentoPort.com. 

This segment is sponsored by Discount Gold and Silver Trading. Ask for Melody Cedarstrom, the owner, at 1-800-375-4188.

 

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Comments
  1. Anthony Australia

    Thanks Greg,

    Pento is as honest and bright as they come.

    An interesting video on Gold. Hope you don’t mind me posting;
    https://youtu.be/9fBCOsqzBig

    On the flip side an abhorrent article from the MSM here; hashed from other sources, about global debt. They’ve been running a few of late, tells me something big is up;

    https://www.smh.com.au/business/the-economy/companies-18t-debt-bubble-could-spark-a-devastating-global-fire-sale-20190227-p510hp.html

    • Rob

      Thank you for the SMH article Anthony as it completely agrees with Michael Pento’s forecast! The BIS, the IMF, the FED, and the Central banks of the globe have set up the world for a complete destruction of all fiat currencies through both public and private debt implosion so they can reset the world into an electronic cryptocurrency!

      When JPMorgan which is a CB masquerading as a private bank launched the “JPM Coin” they proved we took a major step toward the reset by mainstreaming blockchain technology in the financial system:

      https://seekingalpha.com/article/4242382-mainstreaming-blockchain

      All that is required is the “7 years” of ramping inflation to bring EXACTLY what Jesus’ 3rd seal unleashes:

      Revelation 6:5-6 And when he opened the third seal, I heard the third living creature saying, Come. And I saw, and behold, a black horse; and he that sat thereon had a balance in his hand. (6) And I heard as it were a voice in the midst of the four living creatures saying, A measure of wheat for a shilling, and three measures of barley for a shilling; and the oil and the wine hurt thou not.

      This is all being orchestrated by our Father who handed Jesus the book of 7 seals that He will open over a 7 year period with the 1st seal commencing the 7 year tribulation:

      https://sumofthyword.com/2016/10/04/the-rapture-of-the-church-is-after-the-tribulation/

  2. paul ...

    Michael Pento says: “Get ready for big inflation” … with the Demon-rats running a bunch of commies for President in 2020 … big inflation “is guaranteed” (so buy gold) … now if Trump wants to win in 2020 … he must “neutralize the perception” people have that the 1% are currently on the dole and getting a free lunch … Ivanka Trump is not effectively dispelling this perception … people are going to vote for the commies en mass … because the commies promise to print up all the money necessary to put the 99% on the dole to get their fair share of the free lunch (the 1% are now getting)!! … https://www.zerohedge.com/news/2019-02-26/ivanka-starts-cat-fight-aoc-people-dont-want-guaranteed-minimum

    • paul ...

      People are getting the message … the US Mint has run out of silver to make more silver coins (the US Mint is required by law to go into the open market and buy more silver to satisfy the public’s demand for silver coins … but they have instead “illegally” suspended production) … likely simply following orders from the Ponzi Protection Team so as not to drive the price of silver upward … but by the weasels at the US Mint not going to satisfy demand … is like trying to hold a cork in a heated champagne bottle … these “weasels” will soon hear “Pop”!! … https://www.zerohedge.com/news/2019-02-27/us-mint-suspends-silver-bullion-coin-sales-after-sales-double-february

      • paul ...

        Another weasel is that two faced “forked tongue” Cohen … perpetual lairs always believe others will believe their lies (because they repeat them so often … just like the Nazi’s knew that telling lies “often enough” will get people to believe them) … what I don’t like about Trump is that he has a propensity to surround himself with really evil people (evil neocons, evil banksters, evil lawyers, etc.) … not good!!!

    • TSI

      The problem is that we have socialism for the elites, a few crumbs thrown to the poor and nothing for the middle-class. I believe this is what you are alluding to when you say the perception is that “the 1% are currently on the dole and getting a free lunch”. So yes, I agree with you that people will eventually catch on and want to join the socialist party-time. I expect Bernie Sanders agrees with you as well, hence why he is running again.

      • Greg Hunter

        TSI,
        For once we agree. We should have taken all the Warren Buffett’s of the world into bankruptcy in 2008 and set the system and the 99% would be doing much better today. There would have been pain but much more coming than that because of the Fed and all the bailouts. Socialism will not fix what is coming either and will only make it worse!!
        Greg

        • TSI

          I thought Warren was like the Yoda of investing. Still if he is one of the 1 percent getting a “free lunch”, as Paul put it, his name fits the bill perfectly.

      • Freebrezer

        TSI – What boggles the mind is the peddling of this ‘savior’ called socialism to make things ‘just’ , which is a complete farce, a big lie and scam. The ruling elites become more elite under socialism as they promise to throw ‘FREE’ breadcrumbs to the masses all in the name equality. Show me one socialist country where the ruling elites do not live in luxury at the behest of the serfs! The serfs throw out their trembling arms for their little freebees, while they live under an abject dictator ruler ship … the masses are completely brainwashed. They are completely dumb and ignorant in that the present USA system at the top is an Oligarchy and not a free market capitalism … Same for Europe and most countries. In a true free market, people and entities go broke … Not for the elite! The bankers (the FED) did not let their elite brethren go bust! As Greg mentions- Warren Buffet was broke … Goldman Sucks would have gone broke because AIG went broke … a whole daisy chain of elites should have gone bust around the world! They gambled big, lost and still won big … All bailed out at the behest of their elite brethren at the Fed and all burdens laid on the shoulders of the middle class – the tax payer. Do you honestly think that under socialism the elites are going to act differently … Please … Mans thirst for power does not change regardless of the ism the are in. https://www.youtube.com/watch?v=Cjwonvar-3g

        • TSI

          You make some good points.

    • Arthur L Barnes

      Paul, yea, I heard one new political socialist on the recently explain that everyone would get a pay check even if they didn’t want to work, seriously I thought that that would sell to lots of American hating slackers out there who either hasn’t worked or never have worked not to mention all the others who have no work ethic to speak of. Trump has his work cut out for him that is for sure. The good news if there is any, is that many true critical thinking Americans realize there is no free lunch like what Bernie and Company are trying to sell.

      • paul ...

        Arthur … the slackers will soon regret they were not stackers when(if) commie Bernie gets control in 2020!!

        • paul ...

          Pento has about 18% of his assets in gold … what about an older person who owns a $300,000 dollar home (fully paid for) … 18% would be $54,000 dollars or about 40 ounces of gold … now for a younger couple (with a home mortgage) and say $60,000 invested in their $300,000 dollar home … 18% of $60,000 is $10,800 … so a younger couple will need about 8 ounces of gold … some people don’t include a persons house in their calculations as to how much gold to own … this is wrong … as a home is a liability whether to a bank or to a property tax assessor (which can be seized if a few payments are missed) … it should be covered by gold “insurance” that is not someone else’s liability!

          • paul ...

            Bottom line … the more money you have invested in your home … the more money you need to invest in physical gold (the same holds true of the stocks and bonds you hold … their value also needs to be insured by gold)!!

            • paul ...

              You know … Trump has another thing to worry about in 2020 … and that is that his base will simply stay home and “not vote at all” … hoping for a Demon-rat victory … so inflation will finally drive up the price of all the gold and silver coins they own … to avoid such a situation … Trump should tell his Ponzi Protection Team to keep their hands off gold (and perhaps even manipulate it up a bit) … this way in 2020 his base will be so happy they will enthusiastically vote for him early (and often)!!

  3. Virtual Reality

    America’s one and only attempt at quasi colonization. Where Civil War, WWIII and Armageddon reside.

    Is Liberia in your future? Unfortunately, it looks like it!

    New Living Translation
    In fact, unless that time of calamity is shortened, not a single person will survive. But it will be shortened for the sake of God’s chosen ones.
    ◄ Matthew 24:22 ►

    Total Hell On Earth!
    https://www.youtube.com/watch?v=OMwI5unlK9M
    It’s A Freaky, Freaky Business

    Just because your in a hell hole, don’t think you can always get away with murder!
    https://www.youtube.com/watch?v=4G9S-eoLgX4
    Nothing Stays Hidden Forever, There Is A God!

    • paul ...

      Colonization of the Solar System will better the chances for our civilization (and all Earth’s species) to survive the cyclic explosions on our Sun every 12,000 years … now if a billionaire is going to work toward the goal of saving humanity he is effectively a “God guy” … so my categorization of billionaires as the major problem manipulating our government can’t be so simply made into a black or white issue … yes we we need less greedy billionaires … but intelligent billionaires with a good vision for humanity can greatly help to do God’s work … https://www.zerohedge.com/news/2019-02-27/bezos-envisions-trillion-humans-across-solar-system-1000-mozarts-and-1000-einsteins

  4. Archie Leach

    Moving Toward Sussesion & CivilWar

    Politics
    Colorado Moves To Bypass Electoral College: Will Assign Electoral Votes To Popular Vote Winner
    Mac Slavo
    Certain political elements within the United States simply can’t deal with the fact that our Founders created a voting system that ensured limitations on mob rule stemming from a handful of cities throughout the country. To protect the rights of all Americans, including those living in smaller rural counties, they came up with the electoral college, a method by which all Americans from varying backgrounds and ideologies can be represented during a Presidential election.

    In the next election, Colorado aims to assign all electoral votes to the winner of the national Popular Vote, rather than then to the individual who brings in the most votes in their State, essentially invalidating the will of their own State citizens. Somehow, this makes sense to Colorado governor Jared Polis:
    “I’ve long supported electing the president by who gets the most votes,” Polis told The Hill. “It’s a way to move towards direct election of the president.”
    https://freedomoutpost.com/colorado-moves-to-bypass-electoral-college-will-assign-electoral-votes-to-popular-vote-winner/

  5. William Stanley

    Thanks, Mr. Hunter!
    Well, there it is. The depression has begun. After awhile that gets joined by accelerating inflation.
    Stagflation, worse unemployment and social chaos, IMO. To have any chance, we have to be in PMs big time.
    The remaining big question for me is whether house prices will crash over the next year or so — before they start rising quickly with the long-term overall rate of inflation. I’m not so sure that the Fed can stop that from happening.

    • DB Cooper

      Mr. Stanley, We appreciated your post about your Shetland … and he reminds us of our Border Collie, Amos, … now bear in mind that a Border collie is really smart in a very narrow window!! If there is stock involved then he is in his element … but … if outside his field of expertise … “Really Pretty Stupid!!”… for example … if there is a garden hose laying in the yard, Amos will stare at the hose end … like all day, waiting for the water to arrive !! … and if you happen to be using a shovel … he has to be right at the end of it to the point that you have to shoo him away so as to not whack him with the shovel !! Life on the homestead, Yours in country humor, FN, DB.

      • William Stanley

        DB,
        Nikko has a thing for irrigation sprinklers! If I had a nickel for every time he tore one up . . .

        • William Stanley

          Nikko either thinks he’s protecting us all from the sprinkler . . . or he has a very deep bias against vegetables trying to migrate into the neighborhood.

    • TSI

      They probably won’t be able to stop house prices crashing. I would love to bag one of those apartments in a Chinese ghost city, preferably Thames town, so that when the Chinese tourists come my accent will fit with the own and then perhaps I can be a tour guide.

      • William Stanley

        At least you’ve got a plan, TSI.

  6. JC

    Greg, does Mr. Pento, in addition to physical gold, have any gold mining stocks in his portfolio ?

    • Greg Hunter

      JC,
      I think he does but I am not sure. Contact Pento’s office: http://pentoport.com/
      Greg

    • TSI

      I would imagine Pento doesn’t hold physical gold for his fund, just paper gold and perhaps gold mining stocks. I bet he has a stack of gold eagles under his bed though.

      • Greg Hunter

        TSI,
        I think he said in the interview it was 17% physical.
        Greg

        • TSI

          Oh thanks for the correction.

  7. George Mubarek

    Please excuse me Greg for speaking out of turn and I only read the excerpt and maybe he explained it in video format but did he not say that the market would crash in October? It always seems to go down in October any