Courtesy of Mish.
Several readers have ask me to comment on a King World interview of Michael Pento.
Before I offer my comments on Pento’s thoughts, let me say upfront that Eric King is a world-class interviewer. King lets his interviewees have their say, no matter what it is.
It is up to listeners to decide whether the message makes any sense or not. King merely wants the position to be well stated.
Email Request From US
Have you listened to Mike Pento’s scenario where the FED will cease to pay interest on reserves held at the FED, as a result, forcing banks to loan out the money to seek some return. He believes that they will be encourage to purchase US treasuries:
Is this viable and/or probable?
Thanks for providing us with such a great blog.
All the best,
Email From Down Under
I follow your work from Australia with great interest. I was impressed with your argument that the creation of new money will not lead to price increases because it is deposited with the Fed, and does not make it into the real economy.