Michael Pento, president and founder of Pento Portfolio Strategies (PPS), joins Julia La Roche on episode 268, warning of a coming "grand reconciliation" where credit, stock, and real estate bubbles will burst. He argues the US debt is unsustainable, with the next recession triggering $4-6 trillion annual deficits. Pento predicts Trump will replace Powell with an "obsequious sycophant" in May 2026 who will slash rates to zero, causing long-term rates to spike and creating a "debt death spiral." He recommends hard assets like gold and platinum, which he expects will "scream higher" in 2026, and emphasizes the critical importance of active management to navigate the coming crisis.
Sponsors:
Monetary Metals: https://monetary-metals.com/julia
Kalshi: https://kalshi.com/julia
Links:
https://pentoport.com/
https://twitter.com/michaelpento
0:00 Intro and welcome Michael
01:01 - Macro picture
06:16 - Grand reconciliation coming: debt, real estate, stocks
11:27 - Case for platinum and gold - platinum breakout
14:32 - Hard assets will "scream higher" in 2026
17:11 - Fed should be defunct - market should set rates
22:08 - Next recession: deficit jumps to $4-6 trillion
25:21 - US debt
32:29 - 2026
34:38 - Next Fed chair will be "obsequious sycophant"
38:03 - Closing remarks
