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Kerry Lutz's--Financial Survival Network

Oct 11, 2022

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.

-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