Money manager Michael Pento says things are going to get much worse from here. Pento explains, “They understand when the stock market goes down, consumption and the wealth effect crumble, and the economy is going to falter. So, they are going to have to pursue a radical inflation goal. ”
So, what is going to happen to the price of gold and silver? Pento says, “When they do this and they (the Fed) have to change and go from . . . draining its balance sheet and admit that they have permanently monetized $4.5 trillion of debt, and they will only be able to increase the size of their balance sheet and never be able to drain it and never be able to raise interest rates, gold and silver that has long been suffering . . . are going to rip higher like they have never done before. Gold and silver and the mining shares are going to go like a rocket ship, higher. . . . If I was a poor guy or a rich guy who wanted to preserve his purchasing power, I would be buying physical gold and silver, and mostly gold.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with money manager Michael Pento of Pento Portfolio Strategies.