US becoming more like Greece as national debt explodes, market analyst tells Boom Bust
The US Federal Reserve left interest rates near zero and vowed to use all the tools to support the recovery from an economic downturn that Chairman Jerome Powell called the most severe “in our lifetime.”
RT’s Boom Bust is joined by Michael Pento, the founder and president of Pento Portfolio Strategies, to discuss the US central bank’s monetary policy and its impact on the economy.
“The Fed is now forced to permanently monetize our debt,” he says, adding “Our national debt is now 130 percent of GDP. We are looking more and more like Greece as time goes by. We are adding to that debt $4 trillion in fiscal 2020.”
Pento continues: “By the way, that debt is now 1,000 percent of our revenue… The Fed is not going to be able to extricate itself from this problem, just like it wasn’t able to extricate itself out of the Great Recession.”
He reminds that “In 2019, before anyone ever heard about the Wuhan virus, the Fed was cutting rates three times. So, we’re trapped in this endless cycle of yield repression and debt monetization for a very long time, unfortunately.”
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