KWN has been getting bombarded from readers around the world on the Michael Pento piece titled, “This Major Fed Move Is About To Cause Gold To Skyrocket.” Today we followed up with Michael Pento because there was such tremendous interest in knowing more about this major move he expects from the Fed. Today Pento told King World News that this move he is predicting could add a staggering $15 trillion to the money supply.
Pento, of Pento Portfolio Strategies, also said that if this move happens, “you will see the gold market fly far past its nominal record high in extremely short order.” Here is what Pento had to say: “So let me put it together for your listeners. We have $1.42 trillion of excess reserves. We are now going to be told that there will be no capital reserve requirements on owning sovereign debt. You will have commercial banks flooding the market with the purchase of sovereign debt. Not just US debt, Portuguese debt, Spanish debt, Greek debt, all of that debt will have zero capital requirements.”
Michael Pento continues:
“Let me be clear on this, I’m not saying it could increase M2 money supply to $15 trillion, this could increase it by $15 trillion. So we’re talking perhaps about $24 trillion. It has the potential to increase to rapidly increase the global money supply, and it would be a tremendous boost to commodities, oil and precious metals.
However, I would add that it will only vastly exacerbate the stagflationary environment that we see gripping the entire developed world....
MORE AT HEADING ABOVE