Record Swings of Deflation and Inflation Coming – Michael Pento with Greg Hunter

Michael Pento – Global Currency Depreciation Derby-Gold Big Winner

by Greg Hunter
USA Watchdog

Money manager Michael Pento says the Fed and other global central banks are “not going to stop manipulating the markets.” Pento explains, “There is no escape from the manipulation by central banks and manipulation of asset prices. There is no escape of manipulation of interest rates, of money supply growth, of stock values and of bond prices. They can never stop. . . . Just a hint that this massive manipulation of all markets and asset classes might end someday sends them crashing. So, there is no escape in Japan, China, Europe and the United States. That means we are headed for massive bouts of wild swings between inflation and deflation, the likes of which we have never before seen in the history of economics.”

Pento contends the manipulation will stop when countries “lose control of their currencies.” Pento contends, China may be the first big domino to fall and points out, “China is going to lose control of its currency. They have more bad loans today, about $650 billion worth of defaulting loans, than our entire subprime mortgage market circa 2006. Their currency has to collapse. They are trying to manage this, and they manage everything to the hundredth decimal point in China. China manages everything, and they admit to it. . . . They are trying to not let bad loans wash out. They are trying to keep them afloat. What’s going to give way is their currency. The renminbi is going to collapse. That has massive repercussions to all those East Asian trading blocks and their relationship to the dollar’s value. This is not going to go away. China is a Sino scam artist country, and it will collapse just like the rest of the world’s markets and economy.”

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