Tuesday, 10 July 2012

$15 Trillion to be Released into the Money Supply

“So let me put it together for your listeners. We have $1.42 trillion of excess reserves. We are now going to be told that there will be no capital reserve requirements on owning sovereign debt. You will have commercial banks flooding the market with the purchase of sovereign debt. Not just US debt, Portuguese debt, Spanish debt, Greek debt, all of that debt will have zero capital requirements.”

“Let me be clear on this, I’m not saying it could increase M2 money supply to $15 trillion, this could increase it by $15 trillion. So we’re talking perhaps about $24 trillion. It has the potential to increase to rapidly increase the global money supply, and it would be a tremendous boost to commodities, oil and precious metals.

However, I would add that it will only vastly exacerbate the stagflationary environment that we see gripping the entire developed world...."

- Michael Pento, via a recent King World News interview:

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