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GoldSeek Radio: Michael Pento, Bob Hoye, and Chris Waltzek

Chris Waltzek
|
January 7, 2019 - 3:44pm

 

Jan. 4th, 2019 (S14-E677)

Featured Guests

Michael Pento & Bob Hoye

Happy New Year!

Please Listen Here

Show Highlights

  • Michael Pento, President and Founder of Pento Portfolio Strategies LLC returns to Goldseek.com Radio with comprehensive economic analysis.
  • While his Autumn economic / market downturn came to pass as predicted on this show, market rallies may be merely selling opportunities.
  • Investors are encouraged to prepare for "... a global depression, the likes of which we've never seen..."
  • In the wake of QT operations via 9 Fed rate hikes, the higher cost of issuing new debt has eliminated much of the incentive for corporate buybacks.
  • Unlike 2008-2009 Great Recession where Fed Policymakers held merely a $0.8 trillion debt load and the luxury of a 5% lending rate cushion.
  • Today, merely 2.5% rates plus the enormous $4 trillion Fed balance sheet threatens the validity of a new round of QE Part II.
  • The global economy could be facing an imminent deflationary economic collapse.
  • Economic stabilization in the 2018-2019 could require 24/7 printing at the US Treasury.
  • Such operations would decimate free markets, initially through debilitating deflation, followed by the panacea of last resort, dollar-devaluation.
  • The end result: rampant inflation reminiscent of Zimbabwe, Argentina and the Weimar Republic.
  • Given the financial risks outlined in the dialogue, the guest / host concur that the nascent PMs bull market presents excellent diversification / insurance opportunities.
  • Season 14 kicks off with part II of the discussion with Bob Hoye of Institutional Advisors, with stellar news for gold shares aficionado.
  • "PM's stocks will go to the equivalent of $10,000 gold," in the nascent bull market advance.
  • The dialogue includes the "citizen uprising" occurring throughout Europe and North America.
  • The host underscores the timeless wisdom of Mohandas Ghandi, who promoted societal enhancement via nonviolent resistance.
  • Economic history is replete with examples of cooperative trade that boosted the GDP of all nations involved despite sociopolitical differences.
  • Each country concentrated on its own relative competitive edge via Ricardo's models to the overall benefit of humanity, the hallmark prosperity.
  • Much of the recent prosperity was unknown merely 2-3 generations hence; society was devoid of antibiotics, AI, air travel, refrigeration, mobile phones.
  • Once trade barriers are erected, Adam Smith's invisible hand is burdened by taxes, reducing economic benefits of trade.
  • The Fed rate hiking cycle was clearly a key component of the equities zenith of 2018 and subsequent selloff.
  • The most glaring contributing factor is arguably the trade war between the US and China, where policymakers have chosen to ignore the lessons of history.
  • The Smoot-Hawley Tariff Act as well as the subsequent stock market collapse of nearly 90% and the Great Depression that followed.
  • Will history rhyme resulting in the Great Depression II, eclipsing the deluge of the 2008 Great Recession?
  • The increased market volatility and shift in CME FFF's contracts encourages investors to deploy defensive safe-haven investing methods.
  • TIME article for Bitcoin naysayers.

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