Massive Global Defaults Coming [Video]

pentoGreg Hunter – Money manager Michael Pento says President Trump sent a profound financial message to Wall Street and Main Street when he said $74 billion in Puerto Rican debt needed to be “wiped out.” Pento, who is also an economist, explains, “What I find very striking is that Trump said, very honestly, we’re going to get rid of that.  We’re going to abrogate it.  We’re going to cancel that debt.

So, he’s telling private creditors, Goldman Sachs, pension funds and individual bond holders, you’re going to get close to, if not exactly, zero cents on the dollar.

https://youtu.be/WOFWq3Cau2c

That’s an explicit default on debt. . . . Ladies and gentleman, please listen to me, the governments of the world, which include the United States, Puerto Rico, Greece, China, Japan and Eurozone, they are going to default on their debt either explicitly or implicitly through inflation.  That is what’s happening now, and that condition will only exacerbate as we go through time.”

Continue reading

Catastrophic Bond Market Collapse Approaches [w/ Video]

PentoGreg Hunter – Money manager Michael Pento wrote a book a few years ago warning of “The Coming Bond Market Collapse.” All the signs say this calamity is very close. Pento explains, “Global central bank balance sheets have risen from $6 trillion in 2007 to $21 trillion today. That’s the increase in the size of central bank balance sheets. . . .

I can prove to you when this bubble breaks, it’s going to be disastrous. . . . Just that they (European Central Bank-ECB) didn’t hint at expanding QE and look at what it has rendered us. That’s proof positive that everything that has happened since the 2008 collapse, that it’s just been artificial and ephemeral in nature. Once central banks even hint at pulling back from their QE programs and ZIRP and NERP go away, bonds will crash, and when those sovereign bonds crash on a global basis, it’s going to take everything else down with it concurrently.”

http://youtu.be/BhTl4f10t3g

What happens if the Fed raises interest rates, and what happens if it doesn’t? Pento contends, “If the Fed actually raises rates in this September meeting, I think what you saw last week and what you are experiencing this week is just the warm-up act. You are going to have a wipeout in bonds. Everybody is going to be rushing for the door at the same time, and there is no room but for one out of a thousand to get through. So, it’s going to be catastrophic.”

Continue reading