Michael Pento Message to the Federal Reserve:
Quit treating the American people like we are all mentally challenged.
Michael Pento interviewed by Eric King of King World News and points out that the Fed is supposed to promote stability, not inflation. "When did the Fed mandate change? They used to have a mandate for stable prices... and gainful employment. Now they can't do anything about gainful employment unless they want to hire more people at the Federal Reserve, but when did that mandate change from stable prices to 1% year-over-year inflation isn't good enough for them?"
Eventually bond holders will give up on the Fed poisoned economy. "Sooner or later they're going to have to wake up and say gee... I'm getting nothing and my nominal return from sovereign debt is nothing and yet I'm losing all this money due to inflation and the currency I hold it in is getting destroyed. Maybe that's not such a good idea."
"I'm not saying they're going to be selling en masse, I'm not even going down that road, but what if they just boycott to a great degree our treasury auctions?" Pento said. "Who's going to buy it? The Americans don't have the savings, the Japanese have their own huge problems, the Europeans are undergoing austerity, and the Chinese have said they're going to attenuate their purchases dramatically... Who's left? Ben Bernanke and his printing press." King World News Link