Salient to Investors:

Michael Pento at Pento Portfolio Strategies writes:

  • In not allowing participants to sell stocks, China has fallen off the free market wagon. The same China that believes that economies grow by building empty cities.
  • China’s actions are the antithesis of capitalism and free markets so it shocking to see Wall Street applaud the Chinese moves to keep the bubble afloat. Goldman Sachs says that 40 years of statistical data indicates a standard bull market correction and not a bear market and is urging investors to buy. Puzzling is where Goldman got 40 years of honest and consistent data from China, and when before did China expand its debt by $20 trillion dollars in just 8 years.
  • China has now created a market where money can move in but cannot easily move out, if at all, and so all technical and fundamental analysis goes out the door.
  • There are no free markets left in the world, and most on Wall Street prefer it that way. In this new world, stocks never go down, companies never fail, and countries never default on their debt – central banks just print all the problems away. Central bankers do not understand how markets and economies work, just how to print more money.
  • There is no better place to live than in a free market Capitalist economy, and only when one veers from this model, as in the past 7 years, does wealth inequality balloon. People have willingly handed over the markets, economies and the structure of the family to governments, which can only lead to stagflation, economic collapse and chaos – the ultimate fate of the entire developed world.

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