Despite concerns of inflation in the wake of Covid-19 stimulus spending, the US Federal Reserve is issuing assurance that everything is under control as criticism continues to mount.
RT’s Boom Bust talks to Michael Pento of Pento Portfolio Strategies about the current situation and his forecast on what to expect.
Pento says that the total debt of the United States is now 400% of GDP; that’s including national debt, government debt, individual and business debts, and others. “So, the bond bubble holds the key to everything.”
He points out that “The US Treasury sold $40 billion in T-bills [Treasury bills – Ed.] last week at an interest rate of zero. This is the most epic bond bubble in the history of all bubbles. So, it’s all contingent on free money forever, and it’s not going to last very long.”
“The Federal Reserve is telling you ‘Don’t worry about inflation cause if it gets out of control (which it already has) we have the tools to stop it.’ Oh, what are the tools – raising interest rates? And when you raise interest rates, you pop all the bubbles concurrently.”
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