Pento:  “Bullard said that any exit would start probably within the next several months at the earliest.  And that’s if it was the result of stronger data.  The data I see is very, very weak.  We had a Non-Farm Payroll report that came out last month which showed that aggregate hours worked were down.

Goods producing jobs lost 9,000 jobs.  So the economy is very weak.  Regional manufacturing surveys are very weak.  There is no reason for the Federal Reserve to take away the punch bowl....

Continue reading the Michael Pento interview below...


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“The stupidity of the Federal Reserve is so blatant here.  In 2007 the Federal Reserve took interest rates to 5 1/4%, and the economy cratered because we had $48 trillion in debt, and a Debt/GDP ratio of 353%.  Interest rates rose and the economy cratered.

We were entering a Great Depression.  Bernanke lowered interest rates to 0%, and debt increased all the way up to $54 trillion.  So why would anybody believe, Mr. Tepper or anybody else, that if the Federal Reserve stopped buying all of our issued debt, if they started to raise interest rates and unwound their balance sheet, and rates went anywhere near 5%, why wouldn’t the same thing happen again?

I’ll tell you the same thing is going to happen.  In 2008 our banks became insolvent.  And in 2015/2016, when interest rates rise, the US government won’t have the tax base to service its debt.  And then the US government will be insolvent.  Who is going to bail us out?”

Pento also added:  “I think gold and silver are experiencing the fear on the part of the market.  The market firmly believes that QE can be exited without any negative ramifications.

How many times have we been threatened, and this threat is so old?  Since 2010 I’ve listened to various members of the Federal Reserve say, ‘This is how we are going to unwind our balance sheets.  Here’s a trial balloon.  These are the mechanics behind unwinding the balance sheet.’

But do you know what they said in the March minutes of their meeting?  ‘We could either decrease our mortgage-backed securities and Treasury purchases, or we could increase the $85 billion of debt monetization.’  So they threw that new line in there.

The precious metals market fears that a rational and smooth exit from the Fed’s monetization efforts is going to occur.  That’s going to be the case until they try that exit.  That exit is going to fail miserably, and when that exit fails miserably we are going to have a new and substantial leg higher in the gold and silver markets.” 

The information above was just a small portion of this incredible interview with Pento.  He exposes the Fed propaganda and lets KWN readers around the world know the reality of what the Fed is facing.  Pento also discusses gold and silver at length.  The KWN audio interview with Michael Pento is available now and you can listen to it by CLICKING HERE.

Michael Pento: President & Founder of Pento Portfolio Strategies and the author of

“The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market”

To pre-order from Amazon CLICK HERE.

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The audio interviews with Michael Pento, Egon von Greyerz, Andrew Maguire, Art Cashin, William Kaye, James Turk, John Hathaway, Dr. Paul Craig Roberts, and MEP Nigel Farage are available now.  Also, be sure to hear the other recent KWN interviews which include Eric Sprott, Marc Faber and Felix Zulauf by CLICKING HERE.

Eric King

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© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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