Michael Pento, Senior Economist at Euro Pacific Capital, and a frequent contributor to our site, made some rather startling predictions in a recent interview with King World News.

Zero Hedge was among the first to comment on this interview, and has provided an excellent summary of his comments:

• The problem, from a bigger stand point, is what happens when the Fed is actively buying up 30 Year bonds with impunity and the much desired (by the Fed) inflation still does not appear? Well, the Fed then, in Michael Pento’s opinion, will begin to purchase stocks and real estate.

• Michael Pento makes the case that as opposed to the occasional market intervention via the President’s Working Group, Bernanke will soon make stock purchases an outright policy of the Federal Reserve as its last ditch attempt to engender inflation before the hundreds of billions of Commercial Real Estate and other bank debt start maturing in 2011/2012.

• And the only safe vehicle, once the market then begins to price in Fed driven asset-price hyperinflation, will be gold.

• Pento also goes into explaining why housing is facing a “deflationary depression,” and a further collapse in pricing, why inflation benefits only those closest to the money, i.e., the banks and the military complex, why it destroys the middle class.

If Michael Pento is right or even close to being right with his predictions, another aspect of our economic problems, rising prices, is just beginning. (my emphasis)

Listen to this very worthwhile interview at King World News.

Also, read Zero Hedge’s comments here.

www.kingworldnews.com

www.zerohedge.com

Michael Pento: Senior Economist at Euro Pacific Capital – Michael is a well-established specialist in the “Austrian School” of economics. He is a regular guest on CNBC, Bloomberg, Fox Business, and other national media outlets and his market analysis can be read in most major financial publications, including the Wall Street Journal. Prior to joining Euro Pacific, Michael worked for a boutique investment advisory firm to create ETFs and UITs that were sold throughout Wall Street. Earlier in his career, he worked on the floor of the NYSE.