Michael Pento

Articles by Michael Pento

The accumulation of Debt, at its very essence, is simply borrowing consumption from the future. And this is true on any level of debt, be it either public or private. Just as savings is deferred consumption, the exact opposite is true for...
The S&P500 is trading near an all-time record high. But investors should not take this as the all clear signal. According to most indicators, the market is now more overvalued than ever before.

The Cyclically Adjusted Price to...
Most Central Bank watchers know that our Federal Reserve has a dual mandate of stable prices in the context of maximum employment. But its use of the words “stable and maximum” is somewhat misleading. For instance, one would assume that “...
The red sun on the flag of Japan symbolizes its position as the land of the rising sun. However, during WWII that round shape was pejoratively referred to as a zero. And now, since Japans economy is emitting so many zeros it can,...
In 1958 economist William Phillips claimed there was a historical inverse relationship between the rate of unemployment and the corresponding rate of inflation. His conclusion was that full employment (whatever that means) was inflationary...
A little over six months ago the owners of the Baha Mar, a $3.5 billion Bahamian resort, filed for bankruptcy. Shoddy construction from the China State Construction Company led to delays resulting from leaking plumbing, porous Chinese...
The most important question investors will soon have to face is: "what's going to happen once central banks finally meet their inflation targets?"

For example, let's assume after years of monetizing government debt, bidding up equity...
The European Central Bank under the auspices of Mario Draghi has created a market destabilizing condition known as the euro carry trade. Mr. Draghi recently telegraphed to the markets a more aggressive attack on the value of the currency...
The October ISM Manufacturing Index, which has been the official barometer of the US manufacturing sector since 1915, came in with a reading of just 50.1. This was a level barely above contraction.

Of the 18 industries surveyed in the...
Last week China’s central bank (the PBOC) cut borrowing costs for the sixth time in a year and eased the reserve requirement ratio (RRR) for the third time this year, in a desperate attempt to achieve the prescribed growth target of 7...

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Gold falls on firm dollar, China rate cut lends support