Saturday, May 20, 2017

Pento is rooting for Cathartic Purging

If interest rates mean-revert, we will be seeing $3 trillion annual deficits.  The bubble will pop, the question is when, not if.  Pento thinks this summer will be a watershed moment - tax cuts will not happen, rate hike occurs.  The Fed will not be able to raise rates as they plan, because they will invert the rate curve and cause a recession.  There will be a crisis in confidence in China, in the Fed, in Trump.  The Fed will be lucky to raise rates 2 more times.  When the Fed stops raising rates, the price of gold will spike.

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