Michael Pento, a money manager and economist says it is no longer a matter of IF our economy tanks, but WHEN. And he says this time, we’ll be flung into a worldwide depression handed to us by the “hubris” of the central bankers.
In an interview with USA Watchdog‘s Greg Hunter, Pento says the next economic downturn will be the “worst ever.” Pento explains, “The mainstream financial media and most of Wall Street . . . will say that the increase of interest rates, the great deleveraging process has been consummated, and central banks can raise interest rates and then call it a “beautiful deleveraging,” a beautiful process. That is a lie. . . . There is $240 trillion of global debt. The bond bubble is bursting. . . . Why are emerging markets crumbling now? It’s because the bond bubble is in the process of bursting. As that bubble bursts, look for this chaos to metastasize across the globe.”
“It’s no longer predictive work. It’s happening,” says Pento about the upcoming bond market collapse.
“I believe this [the bond bubble bursting] will bring down real estate prices, equity market values and start currency chaos. Unfortunately, a worldwide depression is coming like we have never seen before because we have never before had so much debt sit on top of artificially depressed interest rates. The hubris and arrogance of central banks to take that away, they are way too late in doing so, and they think they can do this with impunity. They are dead wrong. They (central banks) have always caused recessions. We are heading into a global depression. The question is what are central banks going to do about it this time? The Federal Reserve does not have a Federal Funds Rate they can take to zero percent. They don’t have a balance sheet that is $800 billion. They have a balance sheet that is $4.3 trillion. . . . The steps that they are going to take after this depression, the powers that be, the Illuminati are pushing things like negative interest rates, universal basic income and helicopter money to re-inflate asset prices, which will be plunging from record high altitudes.”
Pento also says we will have “deflation” first and then “runaway inflation.” He states that this means gold is the place to invest for the foreseeable future. Pento contends, “There is going to be a run on gold like we have never seen before. There is going to be a super-spike in the precious metals. . . . These are unprecedented times coming, and you should take physical possession of your gold. I like gold and I like silver, and I like platinum. I most especially like gold though. . . . This is happening now. The bond bubble is bursting.”
There is free information on Michael Pento’s website called PentoPort.com. You can also find a copy of his book there called The Coming Bond Market Collapse. If you’de like more information on preparing for an economic downturn and a potential global depression, we suggest a book by Tess Pennington titled The Prepper’s Blueprint. The book offers instructions and details on the most simple and concise ways to plan and begin preparing yourself and family for a disaster: including an economic one.
“This is gonna get ugly,” Greg Hunter comments.
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“Unfortunately, a worldwide depression is coming like we have never seen before because we have never before had so much debt sit on top of artificially depressed interest rates. ”
In such a scenario CASH will be KING, as I have told this community time and again.
Save your change, the Treasury will have to mint more coins that have some value. Save your dollars. King Dollar will still be the accepted currency in the USA even if it is not accepted in Russia, China, Iran, Turkey, or Venezuela. 🙂
Inflation will cause Cash to be worthless, Cash will be TP -Toilet Paper worthless, as they declare it NULL AND VOID, just like they have done in dozens of countries. and switch to digital cash.
SO uninformed Durango kiddy, you can take all your #10 cans and throw them in the trash.
You want Physical in your hand, Gold and Silver, which will be the best place to park your wealth.
You won’t even want to wipe your ass with your cash, because cash contains so many germs and diseases from people’s sweaty pocket crotch fluids next to their balls.
OMG! Thar she blows: Good point, some cash may be stored in womens bras for security when riding the subway or out after dark w/sweaty residue. Putting cash in men’s and women’s undies could stink with ball, urine and fecal smells/ germs to boot! My money is direct electronic deposit from 401k, his mil. pension, and Muni bond interest and is odor and germ free!! Yaaay! When I get cash from teller or cash back at store I disinfect with germ wipes then dry on paper towels. Ammo is good as silver, gold for bartering, after cash is not used.
TSB: “SO uninformed Durango kiddy, you can take all your #10 cans and throw them in the trash.”
Not so, grasshopper. A CRASH will be precipitated by a 50-70 % drop in the market indexes, DESTROYING many trillions of dollars …. virtually overnight.
That is not an inflationary event. It is a deflationary event initiating a deflationary spiral. Resets like this are designed to increase the value and purchasing power of the remaining dollars held by the Uber Rich in US Bonds.
The masses will be extremely short of cash and willing to sell their extra real assets at severely discounted prices: ie pennies on the dollars. The Uber Rich will purchase these tangible assets for next to nothing with the dollars they have which have become even more valuable: purchasing more real assets for fewer dollars as interest rates rise.
As the Uber Rich find more real assets that they want, they will sell those bonds to other investors at a lower price (than Par) to give a buyer a higher yield so they can liquidate their bonds for cash to buy real assets; or by borrowing using those bonds as collateral as interest rates decline to stimulate credit demand to stimulate the economy which by this time has flatlined.
After the Uber Rich have sifted through the hubris for the goodies they want, then inflation begins to rise making it more difficult for those with aspiring desires to have more and better; requiring them to pay more for the things they want, sending more dollars to the Uber Rich who bought those assets for a song a few years previously.
That’s the way the cycle works every time for the benefit of the Uber Rich / Investment Class, and how wealth is accumulated by them over time.
Did you learn NOTHING from 2008 ??? 🙁
BTW, a financial reset which happens with determined regularity is not the same as a “universal collapse” that would follow Yellowstone blowing, an emp, nuclear war, pole shift, or Nibiru passing. So enjoy yuor fantasy while you can.
The US Govt will be supported by the US Military, as will US banks, and other American institutions. King dollar will still be the accepted currency of the realm because the PTB are invested in it and hold their wealth in it, allocated and denominated in some form.
If the banking system goes ….. you and I are probably already dead. That’s reality. Get use to it 🙂
“A fool and his money are soon parted.” – Number one slogan among the banksters .
Rope and lampposts? Check. Some passports need to be surrendered.
Ankle bracelets installed. Oh, yes. Make them sweat first.
don’t forget the pitchforks and torches! as the author says, it has ALREADY begun…..and it’s going to be EPIC!
This is literally the same nonsense I’ve been reading since 2009:
Some random “money manager” or “hedge fund manager” “says blah blah”… If you continue saying that the market will crash in an already-known-to-be cyclical economic system, eventually you will be correct; congratulations.
mikemike: I have been reading and hearing this crap for forty years! Many of these “expert financial” bozos (some book authors) have passed on, yet no one today has a freakin’ timeline. Yada yada.. I will continue reaping rewards of direct deposits into my bank acct from our tax free muni interest. Glad we are retired. Recent years, the food hoarders and some PM hoarders are now in cemeteries, all for nada. Their heirs tossed or sold the crap.
when have you seen interest rates to loan money to banks overnite at ZERO percent?
Anyone know what happened to April LaJune?
No recent website updates or twitter posts. Seems to be MIA.
Ah c’mon Mikey Pento… it’ll be all right. You look healthy enough to do some real work. You made one real good point with your, “…As that bubble bursts, look for this chaos to metastasize across the globe..”. When this cancer of a system breaks down, the only solutions will be radiological, chemical or the knife. Me? I’m stocking still up on ‘lead shielding’. Quite a few of us plan on seeing your kind at the nearest lamp-post.
Heartless,
You don’t have a clue who Michael Pinto is, or what he has done to try to wake people up to the distorted and manipulated system that our politicians and banksters have foisted on us. He is a patriot in every sense of the word — he tells the truth to power. Just because someone wears a suit and tie and works on Wall Street does not make them your enemy. Research your topics before you make stupid, inaccurate statements.
You’re right ‘T’. I don’t know the guy. I lump him (albeitly as you state – probably incorrectly) with all the other prognosticators that are selling their quite possibly correct estimates of what’s coming for their own personal profit. That is what gets to me. If someone truly wants to help, when the forums to do so are readily available; yet, he’s opted to sell his program, book(s) and of course his portfolio services for a more than tidy 6-7 figure profit…… I just toss him mentally into the bin of vultures. So, my apologies to you for daring to disparage his fine work.
I don’t believe any of these people, but I would welcome a Depression. Inflation is killing us and making people and government(think taxes) artificially rich.
STAGFLATION is what is HERE, and getting worse by the day…..when the price of the things you NEED goes UP, but the price of the things you WANT go DOWN……we ALL lower-class now….
So, you want the dollar to crash so the price of PM’s goes up, alot. But, then, what will you be pricing your PM’s in?
………..the dollar?…. that just crashed?
…Then, you’re right back where you started.
nobody wants gold now, but when the crash happens EVERYBODY will want it…..because it’s the only REAL money….well, it’s the only real money besides THIS STUFF….
food
clean water
bullets
firearms
bullet-proof gear
tools
books
fuel
reliable transportation………
Right now, cash is just a temporary king and just a temporarily useful one with limited applications.
Unless your cash has bought an adequate supply of a variety of necessary preps cached in different places, then it is not your king now, and probably won’t ever be.
Necessary preps: water, nonperishable food, clothing, footwear, sources of heat and energy, flashlights and batteries, transportation (including bicycles), stackable silver coins (.999 or .9999) and so forth and so on.
Every bank in the world is INsolvent.
Let me repeat that: every bank is insolvent because of the derivatives’ evil and other factors.
The most IMPortant prep? Daily prayer and daily getting right with God: let Divine Guidance be your internal GPS. And if that is the only prep you are capable of, trust that you are in Very Good Hands.
God bless you all.
– the Lone Ranger
“Act as if everything depends on you, pray as if everything depends on God.” – St. Augustine
“There is not enough light to put out the light of one small candle.” – Motto of The Christophers
Spoken like a true Jesuit.
sorry to step on yer toes, lone ranger…our comments were pretty similar. i comment as i read the posts.
Mike Mike and Laura Ann, I understand what you’re saying but wouldn’t you say there has been valid reason to be concerned for years? And seems like the inevitable correction was artificially delayed by “borrowing”.
While I agree that false warnings have been sounded for years, it certainly seems like things are getting worse and that the reasons for these warnings is only increasing
right…..how do we finance the debt when interest rates go back to “normal”…..i will answer that FOR you…..we CAN’T….kaboom. the FED’s designed this system to FAIL over a hundred years ago….not POSSIBLE to keep this up much longer….but they sho am good at keepin’ the plates spinnin!
Pento wants to sell you a portfolio with gold. You don’t need him. You can do it yourself.
They will keep up the musical chairs for much longer than you think. The more the music plays, the richer they get. Expect PMs to continue to deflate. When the music stops, they’ll get it all. your PMs, your cash, our real estate, your car, etc…it will be a SHTF moment. Do not forget 2008. Do not forget all the money & assets they stole from the American people & tax payers. Remember all the ‘bailouts’ that our so called leaders gave to these elite. I may not be the smartest guy in the world, but I do know one thing…..a thief will steal again, if he gets away with it. Well, they got away with it. They didn’t go to prison where they belong. They got richer. These elites are greedy psychopaths. That’s a fact.!!!!!