Michael Pento: Don't Fall Off the Fiscal/Monetary Cliffs of 2022

The Fed's efforts to create inflation have succeeded beyond their wildest expectations. They've created $4 trillion and their balance sheet is $8 trillion. We had tremendous amounts of helicopter money raising stock prices and home prices. Enhanced unemployment, mortgage and rent forbearance, student loan deferment are all coming to an end. That's the fiscal cliff. The monetary cliff is already happening. Tapering will resume with the end of bond purchases, probably starting in October. Imagine when the consumer starts having to actually pay their mortgages, credit card bills, etc. The economy is reopening, leisure and hospitality will boom. People got more money for staying home than they would have gotten were they working. It's all coming to an end in 2022. Michael is a self-proclaimed gold bug, inflationista and a dollar bear. Major inflationary booms followed by deflationary busts. There's no taking away the punch bowl. What is the Fed going to do now? You better have a long-term inflation strategy. We're at peak growth and peak inflation now. But that will change shortly. Odds are good for a major credit crisis and repo meltdown is coming. You can't trust the Fed.

Michael Pento is a specialist in Austrian economics and is the President of Pento Portfolio Strategies. Prior to starting Pento Portfolio Strategies he served as a senior economist and VP of the managed products division of another well known financial firm. Michael has also created ETFs and UITs that were sold throughout Wall Street. Earlier in his career, he worked on the floor of the NYSE. He is the author of The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market.