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Bill Gross: "Ultimately Creditors And Investors Are At The Behest Of A Central Bank And Policymakers That Will Rob Them Of Their Money"
Bill Gross had a great sound bite at Forbes' annual investing roundtable:
I
don't know if the U.S. has reached a desperate point, but it is
employing instruments and vehicles and policies that smack of
desperation. We are not looking at a default here, but at years of
accelerating inflation, which basically robs investors and labor of
their real wages and earnings. We are looking at a currency that almost
certainly will depreciate relative to other, stronger currencies in
developing countries that have lower levels of debt and higher growth
potential. And, on the short end of the yield curve, we are looking at
creditors receiving negative real interest rates for a long, long time.
That, in effect, is a default. Ultimately creditors and investors are
at the behest of a central bank and policymakers that will rob them of
their money.
Gross' statement came right after the following zinger from Marc Faber:
Janet
Yellen, vice chair of the Federal Reserve, said about a year ago that
if it were possible to push interest rates into negative territory, she
would vote for that. This is a very important statement because it
implies that the Fed will keep real interest rates negative as far as
the eye can see. Negative real rates amount to expropriation and destroy
one function of money: to be a store of value and a unit of account. If
you measure the stock market not in dollars but gold, it is down 80%
since 1999. I no longer regard the U.S. dollar as a valid unit of
account. People shouldn't value their wealth in dollars because one day,
in dollars, everyone will be a billionaire.
Of course, Gross and Faber are forecasting high inflation. If deflation or "MixedFlation" prevail instead, things might look very different.
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Inflation paid for our war in Vietnam and its is paying for our other wars today. It permits our elected officials to promise a chicken in every pot (though the birds continually shrink).
The amount spent on the military is meaningless when compared to the amount spent on unfunded liabilities.
Transfer payments are paid for by inflation. The same payments re-elect politicians who then reward their transfer payment voters.
The same voters who are 48% of the nation, pay no federal income tax at all.
I think we should cut all spending at an equal percent. If you cut defense 10% then cut the same amount from every other program as well.
You two got junked by delusional libs.
Though we could see this as a start of a 180 deg. shift in the MSM/gov rhetoric. Is it possible 'they' feel their goal is somewhat accomplished with China and we will see some policy shifts??
I don't understand why it is that Bill Gross has to make such an obvious statement in order for the idea to get traction.
It shows you just how big the herd of fools is.
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wb7
earlier thread great image
"Every turn of the biflation rack is pulling US consumers apart"
http://www.zerohedge.com/article/visualizing-gobal-ponzi-scheme-how-does...
Creditors and investors will be robbed by their sheer gullibility...as it has always happened. In a Ponzi, like this one , is the Greater Fool that is robbed...only, this time, the transfer from the Greater Fools to the sovereigns as been so great that the Ultimate Fool is...all of us.
Hey, one reason for all this is the misunderstanding you voiced.
I am a sovereign.
You are a sovereign.
So called government is a fiction, like SantaClaus or EasterBunny... an idea that provides cover for the most egregious predators on earth, and the armies of parasites that support them in the name of paychecks and [so-called] freebies.
Is Bill playing good cop to Ben's bad cop? Is he about to launch a gold fund?
I'd sure like to know what's up with his statements over the last six months. Does he have so much money that he's developed a conscience?
"..... developed a conscience?"
NO. He has his own agenda.
Always has had his own agenda. Bond King. Stamp King. Fraud King. LOL
FED pussy - Deep throat
Drag queen.
don't insult drag queens like that.
That is my take on him. Kinda like the scene in "Saving Private Ryan" where the glider pilot contritely explains how the crash happened to Tom Hank's platoon. When the pilot was assigned to the general's glider with the armor plating, he probably thought it was a good idea, like everybody else. But after words he admits "Fubar."
As a generation, the boomers min-maxed the game for the post WWII hegemony they had. Furthermore they sold the model/markets to the rest of the world. Bill might be genuinely trying to tell the next generation that "it wont continue to work the way it did in the past."
Saving Private Ryans privates!
I've said this before and I will say it again about Bill Gross, he is making an alibi for himself thats it. For months now he's being saying stuff that are 180 to what he has been doing for years and in concert with the govt.. I think he knows what is happening and will continue to happen and want to get out front and say for the record he was against it and all this "stupid" ideas that the fed and banks came up with. He sees the righting on the wall and it spells hyperinflation as a possibility.
BJ you nailed it - he is without doubt creating an alibi and in doing so provides a heads up - he has spent far too many nights examining his collections not to realize that in future years he could become the subject matter
+1
I'll second, third and forth that.
Mr. Bill had his nose to far up the Fed's for to long to suddenly smell like a rose.
Say Bill, how much did you end up costing taxpayers? How'd those mortgage CDS you got with free Fed money at 10 cents on the dollar and on margin too, work out for you?
I'm sorry but I have to beg to differ. Gross is playing the hand he's dealt because he is bound by his duty to his shareholders, of which I am one. He has done very well for me, thanks.
He may complain about the cards the Fed has dealt to America but he is going to play his hand to the best of his ability.
Regardless if Gross is either shill'n or spill'n, what this article say's it true.
You guys are all assuming that the Federal Reserve is a sacred cow that will never be sacrificed on the altar of a new global financial regime.