In the aftermath of continued propaganda from the Federal Reserve, today King World News spoke with one of the top economists in the world about what the Fed is really planning. Michael Pento spoke candidly about the frightening situation the US faces and how the Fed is trapped, despite mainstream media and Fed misinformation.
Pento: “Bullard said that any exit would start probably within the next several months at the earliest. And that’s if it was the result of stronger data. The data I see is very, very weak. We had a Non-Farm Payroll report that came out last month which showed that aggregate hours worked were down.
Goods producing jobs lost 9,000 jobs. So the economy is very weak. Regional manufacturing surveys are very weak. There is no reason for the Federal Reserve to take away the punch bowl….
“The stupidity of the Federal Reserve is so blatant here. In 2007 the Federal Reserve took interest rates to 5 1/4%, and the economy cratered because we had $48 trillion in debt, and a Debt/GDP ratio of 353%. Interest rates rose and the economy cratered.
We were entering a Great Depression. Bernanke lowered interest rates to 0%, and debt increased all the way up to $54 trillion. So why would anybody believe, Mr. Tepper or anybody else, that if the Federal Reserve stopped buying all of our issued debt, if they started to raise interest rates and unwound their balance sheet, and rates went anywhere near 5%, why wouldn’t the same thing happen again?