Michael Pento Exclusive: “If you do not have a plan to protect yourself from this you’re going to be in deep trouble…”
TheDailyCoin.org
March 4, 2017
Later in today’s program I’m joined by Michael Pento who makes a couple explosive predictions for the economy, the bond market, and precious metals and also talks about the market fallout he expects if President Trump fails to push any of his policies through Congress. His comments may surprise you. So don’t miss a tremendous interview with Michael Pento coming up after this week’s market update.
Precious metals markets are pulling back as the Federal Reserve Note has been strengthening against other currencies. From a technical perspective, gold and silver were both due to take a breather. Silver had put in gains for nine weeks in a row, while gold ran into trouble at its overhead 50-week moving average last Friday.
This week gold and silver saw their biggest drops of the year. Checking in with the markets, gold prices are down 2.5% on the week to trade at $1,226 per ounce. Silver is off 3.6% to bring spot prices to $17.77 an ounce as of this Friday morning recording.
In our Monday Market commentary, sent out to nearly 1,000,000 readers by email and posted to our website, we warned that a pullback was likely to take place soon. If you’re not currently receiving email updates from Money Metals, you owe it to yourself to sign up for them on the main page of our MoneyMetals.com site. It’s absolutely free to sign up. And you’ll get the latest precious metals news and promotions right in your inbox.
Aside from some technical backing and filling, precious metals markets don’t appear to have been thrown off course from their impressive start to the year. They could potentially get thrown off by the next Federal Reserve policy meeting March 14th and 15th. But it’s just as likely to serve as a catalyst for the next up leg. Right now markets are pricing in a near 80% chance of an interest rate hike.
Investors seem to be looking forward to a gradual tightening of monetary policy even as the Trump administration is pushing a highly expansionary fiscal agenda. On Tuesday, President Donald Trump addressed Congress. In addition to calling for tax cuts, Obamacare repeal, and various regulatory reforms geared toward growing the economy, Trump also proposed massive spending increases.
Donald Trump:I am sending Congress a budget that rebuilds the military, eliminates the defense sequester, and calls for one of the largest increases in national defense spending in American history. The time has come for a new program of national rebuilding. To launch our national rebuilding, I will be asking Congress to approve legislation that produces a $1 trillion investment in infrastructure.
It’s not exactly a path to a balanced budget that President Trump outlined. It’s more like a path to asking Congress to raise the debt ceiling once again. In less than two weeks from now, the government could run into its statutory debt limit. Unless Congress raises it, the Trump administration could be forced to engage in some of the same “extraordinary” measures the Obama administration used on multiple occasions to avoid a debt default.
Former Reagan administration official David Stockman is warning that a fiscal crisis looms following the debt ceiling showdown. He is bracing for potential chaos to ensue in financial markets.
The Democrats and the so-called deep state are pushing back hard against Trump’s agenda. They seem to be willing to risk another financial crisis if that’s what it takes to thwart his plans to make America great again. Trump is learning that the path of least resistance in Washington is maintaining the status quo and satisfying its demands for money. Trimming or reforming entrenched bureaucracy is much easier to propose than to enact.
The bottom line is that fiscal restraint appears to be off the table, even with a Republican president and Republican-controlled Congress. More spending and higher debt levels should ultimately put downward pressure on the U.S. dollar – at least in relation to gold, silver, and other hard assets. Investors would be wise to consider the myriad of ways in which they can own hard money outside of the banking system.
The Rest…HERE
