Oct 11, 2022
Summary:
You may have escaped the recent hurricane on the East coast of the
US, but everyone is going to get hit by the economic storm taking
place. Here to talk about this is Michael Pento, who predicted the
record high inflation that has been rampant throughout 2022. He
explains some of the culprits of the most pressing economic
problems today—to which demand destruction and rising nominal
interest rates have affected various markets. Tune in to hear more
about what’s in store and to get Michael’s firsthand
perspective.
Highlights:
-The economic storm taking place is a category 5 and no one seems
to be aware of it
-Back in 2021, Michael predicted record high inflation for 2022 and
the Fed slamming on the brakes in an extremely weak economy
-The Federal reserve has only raised interest rates by 400-500
points a year twice
-Something in the credit markets is going to have to break for the
Fed to come to the rescue
-We have added $3 trillion to household debt to GDP; it is
significantly higher than it was in the past
-We’re already above the rate Powell was threatening to take us
to
-It’s not just the dollar that’s hurting us; it’s demand
destruction
-All bank loans have gone up exponentially, and all debt is hurting
the consumer
-With deflation, the real price of gold could go up while the
nominal price goes down
-Rising nominal interest rates lead to rising real interest
rates
-When real interest rates are rising, you don’t want to go near
gold
-Michael doesn’t think energy prices will go down in the short
term, but that demand destruction will become so acute in 2023 that
prices could go down
-2023 has a huge recession in store
-You stay in power by giving people things for free, but this
creates problems
Useful Links:
Financial Survival Network
Pento Portfolio Strategies