40% Market Crash Coming? Fed Panic, War & Stagflation EXPLODE | Michael Pento

Michael Pento argues the U.S. is in a three-part asset bubble across equities, credit and real estate, and says the Fed has effectively reignited liquidity even after QT ended in Dec. 2025. He cites roughly $170bn of “high-powered money” added in four months — more than $40bn/month — and says that either continued easing or renewed tightening leads to a “crack-up” in credit markets, making a disorderly adjustment inevitable. On his framing, the key macro takeaway for precious metals is that policy is being pulled between inflationary and deflationary failure modes, a setup that is typically supportive for gold and silver as monetary hedges. He also points to the equity market cap-to-GDP ratio at 227% versus a 90% historical average, underscoring how stretched risk assets remain and why any de-risking could intensify safe-haven demand. Near term, the desk focus is less on a specific price target and more on whether the market begins to price a Fed response to slowing growth or credit stress. If liquidity continues to expand, that tends to support nominal assets and hard assets alike; if tightening resumes, Pento’s view is that the credit system breaks first. Either outcome keeps the macro backdrop constructive for bullion, though the interview offers no direct gold/silver price levels or flow data.