Michael Pento: The Fed Will Pursue Radical Inflation Moving Forward

[allthingsluxury]

Money manager Michael Pento says things are going to get much worse from here. Pento explains, “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.”


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https://goldsilverliberty.blogspot.com/2018/12/michael-pento-fed-will-pursue-radical.html

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[tdrinker]

The FED are never going to pursue high levels of inflation, it is monetary suicide. Inflation is a beast that's hard to control once it gets going, there have been countless examples of that in history. At all costs they will avoid inflating money supply too much. Fortunately the dollar is the largest reserve currency around the world. The USA will always have ultimate leverage, if a country asks them to make due on their debt, they can simply explain that they cannot but if they're forced to do so by printing then the dollar will go in to meltdown and all of the aforementioned countries reserves with it.

[aad140386]

There is truth in your words. Yesterday I read the Moodys forecast on the state of the US economy for the next 10 years. And he is very disappointing. Debt service is already very costly for the US economy and it will only grow. If I am not mistaken, then right now on debt service went from 11-13% of the income of the US federal budget. By 2028, debt servicing will be from 20-28% of the budget. This is a colossal loss. Under Trump, debt is growing at even higher rates than under previous presidents, and in the future the United States may face a big problem. The dollar will have to either devalue or somehow reset debts. Both solutions will cause an economic crisis both in the US and around the world.

[boss.afro]

The us government debt will soon reach $ 21 trillion, and next year, analysts estimate that this debt will grow by another $ 1 trillion.

This debt is in the form of 10 and 30-year bonds, i.e. the debt is smeared in time right up to 2048. Us bonds are not required to redeem ahead of schedule. When the pyramid of debt begins to collapse, bondholders can only sell them to those who wish to buy, or just stay with a broken trough.
Secondly, this debt is in the national currency, which the US can print as much as it wants.

[allthingsluxury]

IE fiat money isn't worth the paper it isn't printed on.