Intractable Inflation

Just imagine the carnage that would occur to asset prices and the economy if our current regime of central bankers had to boost interest rates from 0% to double digits!

Therefore, in the not-too-distant future central banks may have to decide whether to let inflation run wild on the back of absolutely unprecedented monetary and fiscal madness (bankrupt governments + unlimited Q.E. + permanent ZIRP), which will wipe out our standard of living. Or, progressively jack up interest rates and cut spending in dramatic fashion, which will obliterate the asset bubbles and the economy in the process. Sadly, in either scenario, the pernicious outcome is very much the same.

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Michael Pento is the President and Founder of Pento Portfolio Strategies, produces the weekly podcast called,  more

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