Financial Survival Network

In this interview, Kerry Lutz speaks with Michael Pento about how liquidity may already be expanding by as much as $20 billion per week, quietly pushing the Federal Reserve's balance sheet back toward $7 trillion — despite continued claims of tight policy. He warns that the next recession could bring massive deficits in the $4–6 trillion range, potentially forcing the Fed to become the primary buyer of U.S. debt once again. If that happens, inflation may not be accidental — it could be the result of outright monetization. Pento also points to historically extreme valuations in stocks and housing, suggesting markets may need a significant reset to return to long-term norms. He believes gold remains in a long-term bull market and could accelerate higher as recession pressures mount and monetary expansion increases. Pento outlines a defensive approach that includes holding physical gold, adjusting liquidity as conditions change, and watching credit markets for early signs of stress. These long-term cycles are ex