Today one of the top economists in the world warned King World News that an incredibly important event is about to take place which will create enormous panic, crush the Fed, and send the price of gold soaring. Michael Pento, who heads Pento Portfolio Strategies, also warned that “We are just beginning to see the cracks in the foundation.” Below is what Pento had to say in another incredibly powerful interview.
Pento: “It’s all about the Fed and the removal of their bid, Eric. We were told for years and years that the foreigners had to buy U.S. debt, and (they) had no other choice. We learned a few days ago that in June they sold a record $40.8 billion of (U.S.) Treasuries, and that was an all-time record going back to 1977.
So even foreigners are now concerned about the final removal of the Fed’s bid, and massive manipulation of our interest rate yield curve spectrum.”
Eric King: “Michael, there has been some discussion on KWN recently about how this could be destabilizing for the entire financial system because of the derivatives exposure there.”
Pento: “Right, there are hundreds of trillions of dollars worth of interest rate derivatives around the world, and that’s just the beginning of the story....