Money manager Michael Pento has long warned the global financial system was “not sustainable or viable” because of record debt creation. Pento has also long said, “This was the biggest debt bubble in history, and it is going to pop someday.” That day has arrived. Now, Pento says, “This is a global depression just like we had in the 1930’s combined with a 2008 style credit crisis. That’s what it is. I was on your program about three months ago, and I predicted a global recession. That was wrong. It is a global depression. . . . We have learned that the S&P 500 earnings will decrease by 10% in the second quarter. We also know that GDP (Gross Domestic Product) for the second quarter is projected to decline by 35%. . . . We also know, according to the St. Louis Federal Reserve President James Bullard, that the unemployment rate in the United States could surge to 42%. . . . April is going to be a disaster. We are not in a recession, we are in a depression, and it is global in nature.”
Pento thinks physical gold and silver are some of the “must have” assets. He has also recently doubled his investment in precious metals.