Free Markets Have Been Completely Obliterated-Michael Pento

by Greg Hunter, USA Watchdog Money manager Michael Pinto says, “We live in a world now where free markets have been completely obliterated. You can’t find a free market left on the planet, and that goes for commodities, equity markets, currencies and particularly goes for the bond markets. The bond markets now do not represent any vestige of reality whatsoever. That should be apparent to anyone with a pulse or an IQ better than a retarded ameba.” On the recent Swiss National Bank move to remove the cap from the franc, Pento says, “It’s the steady erosion of the lack of faith we have as investors now in central banks and fiat currencies. In the case of the Swiss National Bank, they could no longer peg to the euro. Their currency dropped 12% against the dollar in one year. They did not want to suffer what was going to occur with the ECB’s (European Central Bank) decision for massive QE. It’s going to probably get announced on Thursday. If it doesn’t get announced, I will predict even more chaos.” If the ECB money printing is not big enough, Pinto says things will “blow up.” Pinto also says, “If they do print enough money, things are going to blow up. As I said, we have created a huge vacuum in markets.” On central bank interventions that totally control global interest rates, Pento goes on to explain, “Now they own the entire yield curve. They own the entire sovereign debt market. If they ever stop and let the free markets come in, there’s going to be a vacuum, a sling shot in interest rates. They are going to go so high so fast that there will be no revenue left to service debt. That is the sad condition we have across the developed world.” Continue Reading>>>

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