Watershed Event To Change History & The Course Of Markets
August 16, 2013
Today one of the top economists in the world warned King World News that a “watershed event” is about to change history and the course of key global markets. Michael Pento, who heads Pento Portfolio Strategies, also warned that this event will shock market participants and send the price of gold, silver, and the mining shares skyrocketing. Below is what Pento had to say in one of his most powerful interviews ever.
Pento: “I find it interesting that after years and years of being told that the Japanese and the Chinese had no other alternative other than to continue to pile into our Treasury market, the data just showed that they are net sellers of scores of Treasuries in the last month.
That shows me that the Chinese and the Japanese are very aware of what is now unfolding. They realize that the threatened removal of an $85 billion per month bid in mortgage-backed and Treasury bonds is not an incentive for them to continue buying. And they will sell to protect their position.
That further exacerbates the tremendous amount of record-setting pressure that exists on interest rates, and downward pressure on bond prices. You have a Fed that has, for decades, manipulated the price of bonds, and they raised that intervention exponentially when the Great Recession started in 2008….