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Central Banks on a global basis have the global economy and global markets in the ICU unit, and they are on the life support system of money printing. I’ll give you an example. So, let’s look at the global debt scenario. Global debt is now $255 trillion, Mike, that’s up 50% since 2008. Government debt is up 80%, nearly 80% since 2008, the great credit crisis. But you ask yourself, what is the Portuguese, for example? The Portuguese 10-year note yields in this tsunami of new debt that’s been issued?
You know, back in 2000 as well, the PIGS, remember the PIG countries, their debt, Greek debt, the yield was 40%, Portugal and they were up at double digits. Italy, Greece, Ireland, Spain. The Portuguese 10-year note yield is 0.4%. Now on what planet does that make any sense at all? I mean, let’s just do a thought experiment for a second, Mike. Let’s just say that you knew that tomorrow the ECB, the Bank of Japan, and the Fed were going to make announcement. The announcement is that we will be ending QE and we will not buy when the assets mature… we will not roll over any more of that debt, corporate debt, sovereign debt, all that will be rolled off. What do you think would happen to the stock market? I think that it would be lock limit down.
I’ll tell you when it’s going to end. I can’t tell you the date but I have a model that lets me know when to short the market, and believe me when I tell you, this crash is going to be something like we’ve never seen before. It could even dwarf the NASDAQ debacle of 2000, from 2000 to 2002.
I’m looking for a bust in junk bond yields. When junk bond yields implode, because that’s the nucleus of the crisis, that is when you’ll see me go net short the market in my portfolio, in the inflation/deflation and economic cycle model. And when will the junk bond market implode? Whenever the U.S. enters a recession and/or, because it could be both, and/or inflation begins to run intractable. That is when the market will implode. That is when we’ll have our reality check. That is when hopefully we make a lot of money for our investors while the chaos runs rampant around the world.
https://www.gold-eagle.com/article/michael-pento-one-thing-will-tell-us-when-bubble-economy-bursting…