Michael Pento Predicts Bond Crash

In an interview with Greg Hunter of USAWatchDog.com, Michael Pento, a financial analyst with Pento Portfolio Strategies, suggests the jig will be up for the bond market and the dollar once the Federal Reserve admits it cannot raise interest rates without cratering the financial markets. He believes the negative rates on European and other corporate bonds are unsustainable, and that the global nature and depth of the bond markets mean that bonds can skyrocket from negative or zero percent to two, three, or even four percent, or higher, in a matter of days. Such a shift in the bond market will signal a major loss of confidence in them by investors and traders.

He believes that the U.S. is in or about to enter into a recession, thus making continuous rate hikes impractical. He also believes once the world figures out that the U.S. markets are no different from Europe or Japan, and the Federal Reserve starts easing again, that gold can easily rocket near or to its all-time highs. Along these lines, Pento has published his book The Coming Bond Market Collapse that elaborates on these ideas.

Gold Standard Gaining Mainstream Interest

The Chicago Tribune has a new article about how the gold standard is gaining mainstream support as more people realize the flaws of the current monetary system.

George Gilder thinks gold-standard ideas are on the way back whatever the politicians do. Founder and chairman of the Gilder Technology Group and a bestselling author who helped popularize supply-side economics in the Reagan era, he says the trillions of dollars that fly around global currency markets every day are a “bizarre abuse of capitalism,” sucking vitality out of the real economy.