by Greg Hunter
In June, economist and money manager Michael Pento warned the Fed was going to kill the economy by “tapering” the easy money policies. Instead, the Fed ignored inflation, which is obviously not transitory and has kept the money printing going. Now, Pento says it’s coming down to one issue for the Fed. Pento explains, “If the Fed does not taper, yields will skyrocket. That will destroy the economy and kill the real estate market.”
Pento goes on to point out how bad inflation from trillions of dollars of Covid money printing really is in the real world. Pento explains, “Why work and get exposed to Covid 19 when they can stay home, do noting and buy stuff online. That’s your real problem. That’s why you have inflation, if you measured it accurately, close to 14%. . . . Almost 14% inflation, that’s the highest we have seen in 40 years.”
Don’t expect China to get the global economy going like it did after the 2008 meltdown either. Pento says, “What they cannot do is repeat what they did in 2008.