The Potential Reasons for a 40% Inflation Rate in the US, Analyzed by Michael Pento

by | Jun 25, 2023 | Invest During Inflation | 33 comments




What would be the direction of J Powell’s pivot if he were to make a sudden change in policy? Let’s consider a scenario where inflation reaches unprecedented levels, even into the double digits. If Powell were to shift his stance at the slightest indication of an impending recession, it would underscore that the Federal Open Market Committee may never be able to restore interest rates to their regular levels.

With over 27 years of investment experience, Michael Pento founded and currently serves as the President of Pento Portfolio Strategies.

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Why We Might Get 40% Inflation in the US: Michael Pento Sheds Light

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Inflation is an important economic parameter that can have a significant impact on individuals, businesses, and the overall economy. While the United States has largely been able to keep inflation in check over the past few decades, there are concerns that we might experience a surge in inflation in the near future. One expert who has shed light on this potential scenario is Michael Pento.

Michael Pento is an economist, investment advisor, and founder of Pento Portfolio Strategies. With over three decades of experience in the financial industry, Pento has earned a reputation for his accurate predictions and analysis. Recently, he has been warning about the possibility of a 40% inflation rate in the United States, which has sparked considerable interest and debate.

One of the key drivers behind Pento’s prediction is the expansive monetary policy that the US Federal Reserve has adopted in response to the COVID-19 pandemic. As the pandemic forced much of the economy to shut down, the Federal Reserve implemented measures such as low interest rates and quantitative easing to stimulate growth. While these policies were necessary to prevent a complete economic collapse, Pento argues that they have dangerous consequences.

According to Pento, the massive increase in the money supply, combined with the upcoming surge in consumer spending once the economy fully reopens, will inevitably lead to rampant inflation. He points out that the current recovery from the pandemic is fueled by a flood of stimulus money, which is creating an artificial demand and driving up prices. Pento believes this will eventually cause the Federal Reserve to raise interest rates abruptly to combat inflation, resulting in a significant economic downturn.

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Another factor contributing to Pento’s prediction is the enormous debt burden that the United States is currently facing. With trillions of dollars in government spending to combat the pandemic, the national debt has skyrocketed to unprecedented levels. Pento argues that this debt will need to be repaid or financed, and one way to do so is through inflation. As the value of the dollar decreases, it becomes easier for the government to repay its debt with cheaper currency.

While Pento’s prediction of a 40% inflation rate may seem alarming, it is crucial to acknowledge that it is just a prediction based on his analysis and interpretation of the current economic factors at play. Others may hold differing views, and economic forecasts are often subject to numerous variables and uncertainties.

However, Pento’s track record of accurate predictions and his deep understanding of macroeconomic trends make his insights noteworthy. His warnings about the potential for high inflation serve as a reminder that we must closely monitor the economic policies and decisions being made to ensure future stability and growth.

In conclusion, there are growing concerns that the United States may experience a surge in inflation in the near future. Economist and investment advisor Michael Pento is one expert who has shed light on this possibility, predicting a 40% inflation rate. Pento points to the expansive monetary policies and the increasing debt burden as key factors contributing to this prediction. While it remains uncertain how events will unfold, Pento’s warnings remind us of the importance of monitoring and addressing potential economic risks.

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33 Comments

  1. Ron Bauer

    I got a question for you since you're broadcasting did you vote for Democrat

  2. Sweat Ho

    Simple way to cut inflation..cut military spending ..to home defence..recall back all overseas military base..stop funding war machine to kill fellow human beings. Don't spend money..u DONT have. Currently..u are broke..period. banana note.

  3. Stacking Surfer

    Time loop of inflation. I’m in a nightmare grasping my gold and silver.

  4. cslloyd1

    9% my eye. I saw many things double in price. Yeah it averages to something lower, but many things were way higher than 9%

  5. Rj Sauceda

    We are the new Russia LOL

  6. Macy Navarro

    This is bullish. The Fed HAS to pivot to prevent systemic risk. Therefore they have to give in to what Wall Street wants, and create more inflation to keep everything going.

  7. Ewetoob Blowzdogg

    I hope we see a loaf of bread at $100 and a gallon of gas equal a months rent. The collapse can't come soon enough for me!

  8. Amanda James

    Inflation already is 20% Duuude

  9. Anthony Sheppard

    Michael Pento spittin' them FACTZ!!!

  10. Para Bellum

    I bought a 4 unit building during the 09 crash. I closed on it in 2011. The market was so bad ppl were begging to get out of properties. The person I bought it from paid 250k for it in 06. I bought it for 169k today it’s worth 600-700k but the thing is I get calls and texts daily from investment groups trying to buy my property. Every day week day at least one sometimes
    Multiple companies call a day. The only way that would make sense for them is if we’re getting ready to hit a big wave of inflation for which real estate would be the best hedge. I’ve had the building for 12 years and have never had the activity I do now. It’s weird.

  11. The Explorer

    Don't worry Joe Biden will print an extra $10 trillion to pay for the economic crash.

  12. Bill Spencer

    He just pivot by some 300 Billion

  13. Immamessenger

    Donald Trump is Jesus Christ. This is the Great Awakening.

  14. Alan Hawke

    Think of M1 like a bath tube. It was left on by the Fed and your bathroom is flooded. Think of current markets like cleaners, sucking up all the excess water. The destruction of wealth is huge. Excess M1 will not be an issue in 6 months because the cleaners have completed a better job than expected. I respectfully disagree with this theory. Simple test. Are you making or losing money/asset value?

  15. Gregory Sagegreene

    This is in such a seamless loop I watched it like 4 times before I realized that's how inflation is gonna' loop up too!

  16. THE KILLER SENTRA

    You mean the public rioting ? Not when people are living 40 per houshold.

  17. chargermopar

    I constantly say the interest rates can never be allowed to exceed the real rate of inflation….EVER!!!

  18. The Great Fomo

    Real CPI is in the double digits. Government reported inflation rates will never get into double digits, they will simply quit reporting inflation and implement price controls long before that happens.

  19. saad alsaud

    The world order will be turned upside down if that happens. That’s why it won’t happen.

  20. Craig Walenta

    Don't cry for me, Argentina!

  21. Nathalie & Jackie

    That's precisely my point for a long time, Adam. We had a disagreement on Twitter on this. And this is the very reason why I don't agree with Lance.

  22. Paul Saragosa

    so true that brother and amen brother

  23. VoodooD0g

    Saving SVB deposits is hardly piviting on a dime, what a bullshiter. Not saving those deposits would have cost us competetivness for the next decades because 50% of all start up money was in that deposits….

  24. Glow Wurm

    Spot on, if he pivots or reduces rates commodities will sky rocket!!!

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