By Greg Hunter’s USAWatchdog.com (Early Sunday Release)
In September, money manager Michael Pento warned, “The massive bubble blown by global central banks is unraveling now.” Look at the upheaval in markets and he was clearly correct. Now, Pento sees, “Deflation, say it again, deflation . . . . We are heading for a deflationary/ inflationary depression. That’s what we have been modeled for. That’s why we went short in September. . . . We covered the short just before Thanksgiving, and we went short again last Monday just before the crash.”
The debt is enormous and unpayable. So, is the world headed for a debt reset and a crash? Pento says, “I think we are . . . and that is exactly where we are headed. Eventually, we are going to completely reset the currency like Germany had to do following WWI . . . but it is going to have to take one more cycle of inflation before we get there. So, right now, we are deflating, and we have been deflating for a while. We are going to have a deflationary panic in the stock market. It’s no longer predicted. It’s happening, and I think it’s going to happen all over the globe. . . . There is $4 trillion in unfunded liabilities in the public pension system. So, you don’t get your money. The stock market goes down. Social Security is bankrupt. Medicare and Medicaid are bankrupt. All of these social programs are bankrupt, and the stock market tanks, and what are they going to do? What are they going to have to do? They are going to have to go to inflation. Inflation is going to be more than what it was last time. . . . They understand when the stock market goes down, consumption and the wealth effect crumble, and the economy is going to falter. So, they are going to have to pursue a radical inflation goal. ”
So, what is going to happen to the price of gold and silver? Pento says, “When they do this and they (the Fed) have to change and go from . . . draining its balance sheet and admit that they have permanently monetized $4.5 trillion of debt, and they will only be able to increase the size of their balance sheet and never be able to drain it and never be able to raise interest rates, gold and silver that has long been suffering . . . are going to rip higher like they have never done before. Gold and silver and the mining shares are going to go like a rocket ship, higher. . . . If I was a poor guy or a rich guy who wanted to preserve his purchasing power, I would be buying physical gold and silver, and mostly 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:
There is free information and analysis on Michael Pento’s website called PentoPort.com.