Next Financial Meltdown Fed Going All In – Michael Pento

By Greg Hunter’s USAWatchdog.com

Money manager Michael Pento says the massive bubble blown by global central banks is “unraveling now.” Pento explains, “It is a fact, it is starting already. If you look at Chinese shares, if you look at all the emerging markets and if you look at commodity prices, the collapse is already starting. It starts here (in the U.S.) in the fall, and it really defuses around commodities and assets in general in 2019.”

So, countries are going to default on debt? Pento says, “Yeah, but it might not be Argentina that defaults. It could be the entire world that defaults, but first, before that happens . . . the Fed is on record, and it says it made a lot of mistakes. One of the mistakes they say is it acted too slowly. Too slowly? The Fed was lowering rates in 2007. They took rates to 0% by 2008. They went very quickly. They are going to lower rates even faster next time. By the time the next disaster hits, they are only going to have 250 basis points, not 525. The Fed also said they are going to go into quantitative easing (money printing) much quicker and much faster. They did not rule out negative interest rates. In other words, the Fed says they are going to go all in immediately at the first sign that things have gone bad. So, the first time they understand we are headed for the next global meltdown, boom–all in right away . . . . They also said another massive fiscal stimulant is needed.”

What happens to gold and silver prices when the Fed “goes all in” during the next financial crisis? Pento says, “They are going to explode . . . when the stock markets melt down and deficits are rising . . . where is the money going to come from? It has to come from another unprecedented wave, a tidal wave, a tsunami of money printing from the Federal Reserve. If that doesn’t get gold and silver prices, which are on death’s door awakened from their slumber, then nothing will. . . . The physical demand for precious metals is going to skyrocket. . . .The CFTC futures positions are net short in a huge way. There are record net shorts. When that rally comes, it’s going to be a dizzying rally. . . .The inflationary pressures that are building in debt and in base money supply make me believe that the inflationary pressures are going to be unprecedented, the likes of which we have never seen. It might even make the 1970’s and 1980’s look quiescent. That’s the kind of inflationary insolvency that has been built up. When that is released, you are really going to want to own precious metals.”

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

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