Friday, April 28, 2017

Gerald Celente & Michael Pento

April 28, 2017
Featured Guests
Gerald Celente & Michael Pento

Show Highlights
  • Michael Pento, President and Founder of Pento Portfolio Strategies makes his debut on Radio.
  • Fed policymakers are bluffing on rate hikes - their true intention is rate cuts, amid 350% national debt per GNP.
  • "The Fed will never again be able to normalize interest rates (allow to climb significantly) without sending the economy into a tailspin."
  • "The Fed has already tightened enough to send the economy (domestic) into a recession."
  • Officials no longer have the luxury of low interest rates after holding rates low for 100 months (8+ years).
  • According to the Atlanta Fed's numbers, the economy is approaching recessiony GDP - Michael Pento anticipates a recession in 2017.
  • While the official US unemployment rate, the U3 suggests near full-employment, the more accurate / traditional metric, the U6 is ominous.
  • The U6 indicates nearly 100 million Americans are underemployed.
  • The next economic dominos to fall could be China the EU and Japan, with debt climbing four times the GDP rate in China.
  • Equities investors are advised to take note - earnings are comparable to 2014 - little forward progress has occurred since then.
  • Key takeaway point: gold investors are advised to watch for an inversion of the yield curve, indicating a major new trend is likely.
  • The yield curve inverted ahead of the 2008 Great Recession and will likely come to pass before the next inevitable / economic cataclysm.
  • Our guest anticipates the next recession will result in the sharpest decline in economic output since the Great Depression.
  • Negative real interest rates will eventually accelerate the velocity of money, a hallmark of ruinous galloping inflation.
  • Once the process gains momentum, policymakers will manage the debt by allowing the US dollar to decline against rival currencies.
  • To compensate for the ensuing economic chaos, policymakers are preparing the global populace via legislation for Minimum Standard of Living payments.
  • Our guest suggests increasing gold bullion exposure to 10-20% by late 2017.
  • Head of the Trends Research Institute, Gerald Celente returns with comments on gold and US equities.
  • Geopolitical events are escalating amid saber rattling with Syria and North Korea.
  • Such events oftentimes result in market trends with key implications for global investors.
  • Although the post-election rally in US shares is impressive, a reaction is necessary to sustain the upward momentum.
  • With sluggish retail sales via the "Retail Apocalypse," Wall Street may continue to rally while Main Street stagnates.
  • Global currency volatility is improving the appeal of alternatives, such as gold and Bitcoin.
  • Once the yellow metal crosses $1,400, Gerald Celente anticipates a new bull rally will drive the precious metal above the former 2011 peak to $2,000.
  • The Trends Journal compares cannabis legalization to 1933 and the end of prohibition.
  • Canada recently decriminalized cannabis and many US states allow recreational / medicinal usage.
  • Colorado is earning more tax revenue on a medicinal herb than on toxic potent potables.
  • Gerald Celente and the host question why yet another tiny impoverished county is the target of the world's most potent military force.