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Video: An Insolvent Nation with Inflation Problems

By Tom Winnifrith | Saturday 3 August 2024


 


Analyst Michael Pento, from Pento Portfolio Strategies. Pento argues that due to a massive debt-to-revenue ratio and persistent deficits, the USA is insolvent. He links this to the Federal Reserve’s negative real interest rates since 2002, which led to a $7 trillion increase in its balance sheet, tightening bank lending standards, and an inverted yield curve for a record length of time. Pento expresses concerns over credit bubbles, particularly private debt, that have reached alarming levels, but credit spreads remain quiescent.
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