Palisades Gold Radio, Released on 9/1/23

Michael Pento returns to the show to discuss the bond market and the possibility of a recession. He believes we should experience an official recession by the end of the year, based on metrics other than just GDP that already show flat or declining activity. The recent actions the Fed took to boost banks by changing the Discount Window is similar to a very quiet bailout. This will allow banks to continue to lend recklessly. It appears Powell doesn’t know what he’s doing. Money supply should be determined by a tangible like gold so it can remain steady and only increase with economic activity. Inflation is likely to come back and will be treated with the Fed re-targeting it’s inflation goals. This can result in the public losing credibility on the Fed. Furthermore, there is a risk of the U.S. gradually losing reserve currency status. Entitlement programs are estimated to reach 100% of government income by 2040, leading to a freefall economy. The only solution is a depression and a corrective period in which people can understand why it happened. Government will do its best to keep the party going though, which will destroy the dollar’s value. Everything is looking increasingly like a banana republic and we aren’t headed towards more freedom. The Fed introducing its own cryptocurrency could increase control mechanisms and give it tremendous power. These are very real dangers.

0:00 – Introduction
1:08 – Equities & Bond Outlook
6:16 – Fed Policy & Q.E.
9:40 – Japan & Bond Volatility
15:27 – Inflation Outlook & Targets
17:08 – Recession & Equities
20:53 – Deficits & Entitlements
23:32 – Untenable Choices
26:26 – Global Problems
28:15 – Sectors & Outcomes
32:20 – Investing Approach
35:38 – Collapse of Faith
37:18 – Freedoms & CBDCs
42:21 – Wrap Up

Michael Pento is a specialist in Austrian economics and is the President of Pento Portfolio Strategies. Prior to starting Pento Portfolio Strategies he served as a senior economist and VP of the managed products division of another well known financial firm. Michael has also created ETFs and UITs that were sold throughout Wall Street. Earlier in his career, he worked on the floor of the NYSE. He is the author of The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market.

  CBDC, currency crisis, depression, inflation, recession