Michael Pento: Massive Global Defaults Coming – Crazy Stock Market Will Crash
Michael Pento: Massive Global Defaults Coming – Crazy Stock Market Will Crash by Greg Hunter – USA Watchdog
Money manager Michael Pento says President Trump sent a profound financial message to Wall Street and Main Street when he said $74 billion in Puerto Rican debt needed to be “wiped out.” Pento, who is also an economist, explains, “What I find very striking is that Trump said, very honestly, we’re going to get rid of that. We’re going to abrogate it. We’re going to cancel that debt. So, he’s telling private creditors, Goldman Sachs, pension funds and individual bond holders, you’re going to get close to, if not exactly, zero cents on the dollar. That’s an explicit default on debt. . . . Ladies and gentleman, please listen to me, the governments of the world, which include the United States, Puerto Rico, Greece, China, Japan and Eurozone, they are going to default on their debt either explicitly or implicitly through inflation. That is what’s happening now, and that condition will only exacerbate as we go through time.”
Is Puerto Rico a test for debt default? Pento says, “Absolutely correct. It’s what’s going to happen. There has also been a test case in Cyprus and in Greece. They are telling creditors you are going to get ‘X’ cents on the dollar. These are small isolated cases, and please don’t believe that the United States can ever fund its $20.3 trillion worth of debt that’s on the balance sheet. We have over a hundred trillion dollars in unfunded liabilities, and quadrillions of debt in derivatives. So, we are going to have massive defaults.”
Pento says even though the stock market has made huge gains in 2017, don’t expect this to continue. Pento contends, “Year-over-year growth for the third quarter (Q3) is just 2.9%. . . . So, you have no more earnings growth.
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