Loading ...Next Financial Meltdown Fed Going All In – Michael Pento
By Greg Hunter On September 19, 2018 In Market Analysis
By Greg Hunter’s USAWatchdog.com
Money manager Michael Pento says the massive bubble blown by global central banks is “unraveling now.” Pento explains, “It is a fact, it is starting already. If you look at Chinese shares, if you look at all the emerging markets and if you look at commodity prices, the collapse is already starting. It starts here (in the U.S.) in the fall, and it really defuses around commodities and assets in general in 2019.”
So, countries are going to default on debt? Pento says, “Yeah, but it might not be Argentina that defaults. It could be the entire world that defaults, but first, before that happens . . . the Fed is on record, and it says it made a lot of mistakes. One of the mistakes they say is it acted too slowly. Too slowly? The Fed was lowering rates in 2007. They took rates to 0% by 2008. They went very quickly. They are going to lower rates even faster next time. By the time the next disaster hits, they are only going to have 250 basis points, not 525. The Fed also said they are going to go into quantitative easing (money printing) much quicker and much faster. They did not rule out negative interest rates. In other words, the Fed says they are going to go all in immediately at the first sign that things have gone bad. So, the first time they understand we are headed for the next global meltdown, boom–all in right away . . . . They also said another massive fiscal stimulant is needed.”
https://usawatchdog.com/next-financial-meltdown-fed- going-all-in-michael-pento