The US saw the strongest quarterly growth between July and September, when the economy grew at an annualized rate of over 33 percent. It comes after the Covid-19 outbreak caused a record drop in the previous quarter.
NY Pilot’s Boom Bust is joined by Michael Pento, the founder and president of Pento Portfolio Strategies, to discuss what is behind those numbers.
“We’re still down 2.9 in GDP [gross domestic product] year-over-year and that is despite the Fed printing over three trillion dollars through helicopter money and handing it out to people,” the analyst said. He added that while Wall Street is now “begging” for more cash, the US simply cannot print enough money to destroy the virus.
“It’s not really a viable rebound cause it’s predicated on helicopter money,” Pento said. “There are 22 million people still collecting unemployment benefits in this country – that number was 1.4 million people a year ago.”
The “economy is not sustainable unless you continue this farce of massive deficit spending, all that monetized by the Fed,” Pento continued, adding, “And in my opinion, where I come from, it’s not a viable recovery.”
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