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Deep Sunday Morning Thoughts From Bill Gross

Tyler Durden's picture





 

Just because Jack Handey never got to manage $1+ trillion in debt...

 


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Sun, 11/11/2012 - 09:02 | Link to Comment realtick
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Detonation Of The Dome - Deflation Nation And The DJIA http://chartistfriendfrompittsburgh.blogspot.com/2012/11/detonation-of-d...

Sun, 11/11/2012 - 09:09 | Link to Comment GetZeeGold
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In otherwords...we're screwed.

 

Let's see Bam Bam get out of this one.

Sun, 11/11/2012 - 09:21 | Link to Comment Tucson Tom
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He doesn`t want to get out of the problem.A crisis ,in his eyes, is desirable to enact punishment on his perceived colonial oppressors."Never let a good crisis go to waste". Dog the hatches brothers,the barometer is dropping fast!

Sun, 11/11/2012 - 09:51 | Link to Comment Earl of Chiswick
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correction

In otherwords...Pimpco is screwed.

 

Let's see Billy get out of this one. -

not to worry he and his corpratist allies will apply sufficient pressure to their political underlings to ensure an excellent return on their book

 

Sun, 11/11/2012 - 10:40 | Link to Comment Thomas
Thomas's picture

What's a "deep cliff?"

Sun, 11/11/2012 - 11:10 | Link to Comment Enslavethechild...
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It's what they use to convince themselves it's morally acceptable to steal trillions

Sun, 11/11/2012 - 11:19 | Link to Comment northerngirl
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Looters have morals?  On second thought, you are correct.  Since the average American maintains a, "Looter", mentality, it is our moral right to take.

Sun, 11/11/2012 - 11:22 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

your average person is being looted by the government

loot them back

or die

Sun, 11/11/2012 - 13:28 | Link to Comment economics9698
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The gypsies at the Fed are good at playing three card monte.

Sun, 11/11/2012 - 16:55 | Link to Comment FEDbuster
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Some CNN reporter said she didn't like "fiscal cliff", so she wanted people to "tweet" her new suggestions to describe US government's financial collapse. 

I don't "tweet", but the "Shit Abyss" is still my favorite. "As lawmakers approch the shit abyss in 51 days......"  Just guessing that CNN wouldn't use that one.

Sun, 11/11/2012 - 22:33 | Link to Comment markmotive
markmotive's picture

Question: how will the fiscal cliff impact silver?

My answer: could be a rough few months until the Fed kicks in...again.

http://www.planbeconomics.com/2012/11/09/david-morgan-on-the-fiscal-clif...

Sun, 11/11/2012 - 23:24 | Link to Comment FEDbuster
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"Buy some silver or gold every month, become your own central bank", Dr. Marc Faber

"The only true assets are those you can stand in front of and defend with an AR-15", Ann Barnhardt

Sun, 11/11/2012 - 11:27 | Link to Comment Mr Pink
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It's like a shallow mountain but wider

Sun, 11/11/2012 - 11:40 | Link to Comment alfred b.
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       ....it's cleavagier than regular cleavage!

 

Sun, 11/11/2012 - 13:00 | Link to Comment ChanceIs
ChanceIs's picture

Billy be too smart for that.  He is ALWAYS on the inside track.  Remember how he bought mountains of bonds then came to Washington preaching money printing and bond buying.  Then he sold his, warned of inflation, warrned of a bond glut, warned of potential Chinese dumping, and then told Bernanke to start doing Beta tests with reverse repos (or whatever) to start bringing some cash out of circulation.

How will he survive the coming bond implosion???  Buying calls on the TBT perhaps?  That is what I am going to do.  Have been tempted to short some OTM puts right here, right now.

Sun, 11/11/2012 - 11:25 | Link to Comment lakecity55
lakecity55's picture

mumbling from inside a bath house somewhere..... "...now it's time for YT to pay. Pay! Hahahahha.

Larry, where's the crack pipe?"

 

Sun, 11/11/2012 - 11:47 | Link to Comment gtb
gtb's picture

That would be a gay bath house...but is there any other kind?

Sun, 11/11/2012 - 09:10 | Link to Comment maxmad
maxmad's picture

Yeah... the stock market has been telling us deflation.... LOL

Sun, 11/11/2012 - 09:46 | Link to Comment otto skorzeny
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patience young Jedi.

Sun, 11/11/2012 - 09:49 | Link to Comment cjbosk
cjbosk's picture

Max, you home and net worth is certainly signaling deflation. The market is irrevelant because so little of America participates/benefits from the higher prices you see today. Your home will fall more, your net worth will contract more and your "real" wages will continue to fall. Now tell me, is that inflationary?

JapanAmerica Bitchez!

Sun, 11/11/2012 - 09:54 | Link to Comment cossack55
cossack55's picture

In todays world, yes.  In a real world , no.

Sun, 11/11/2012 - 10:36 | Link to Comment algol_dog
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Well, it's on the internet so it must be true ... I'll start preparing right away

Sun, 11/11/2012 - 09:16 | Link to Comment Cognitive Dissonance
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Bill Gross is busy managing perceptions, particularly his own clients. That's what's really going on here.

When interest rates begin to rise the Pimco Total Return (bond) Fund ain't gonna do so good. He is positioning his clients for permission to change the investment mix so he and his Total Return Fund can survive.

Sun, 11/11/2012 - 09:26 | Link to Comment fonzannoon
fonzannoon's picture

If BG had any balls, he would outwardly agree with your thesis. He would come out and say "My plan for the total return fund is to have 50% weighted in physical gold, redeemable at any time by our clients". That would something.

Sun, 11/11/2012 - 09:44 | Link to Comment btb2010
btb2010's picture

He has already told everyone the bond and equities' markets returns will be bleak and to BUY REAL ASSETS, specifically GOLD.

Sun, 11/11/2012 - 09:50 | Link to Comment RSloane
RSloane's picture

He's been fairly consistent about favoring gold at this time. He's also discussed it in different venues. The funny thing about it is he sounds sometimes like he just discovered gold and is excited to tell everyone of his new find!

Sun, 11/11/2012 - 10:14 | Link to Comment fonzannoon
fonzannoon's picture

 i think he recently upped his portfolio's gold holdings by.001%. Time for less talky talky. time for action. 

Sun, 11/11/2012 - 12:58 | Link to Comment Bicycle Repairman
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If Gross wanted to do his clients and this nation favor, he'd buy a bunch of gold and then publicize it.

Sun, 11/11/2012 - 09:14 | Link to Comment francis_sawyer
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Going deeper into debt = 'Shovel Ready Job'

Sun, 11/11/2012 - 13:02 | Link to Comment DosZap
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Going deeper into debt = 'Shovel Ready Job'

YOU have to KNOW what a shovel is, to say that......................the dumb ass(not this poster) that said  hasn't a clue, but it sounded good.

Sun, 11/11/2012 - 09:17 | Link to Comment Peter Pan
Peter Pan's picture

The Fiscal cliff is only the beginning because it does not take into account the unfunded liabilities which ulimately make that fiscal cliff far deeper than anyone can imagine. maybe 4 to 10 times deeper.

Sun, 11/11/2012 - 09:34 | Link to Comment jcaz
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Agreed- we're only being focused on the Fiscal cliff because it's a diversion to the unfunded liabilities mess.....

Sun, 11/11/2012 - 13:04 | Link to Comment ChanceIs
ChanceIs's picture

That's right.  Pushing the seniors off of the fiscal cliff.  That is what fiscal cliffs are good for.  FOREWARD!!!!!!

Thelma and Louise were not so crazy.

Sun, 11/11/2012 - 09:47 | Link to Comment otto skorzeny
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wait til the Fed has to start soaking up munis-if we make it that long

Sun, 11/11/2012 - 09:48 | Link to Comment thomasincincy
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lmfao

Sun, 11/11/2012 - 13:20 | Link to Comment knukles
knukles's picture

Seriously..

I been sayin ' it for some time now...
They gonna be runnin' out of treasuries...
They gonna be runnin' out of MBS
Next stop, a muni buying binge.

To QE or Not to QE, that is the question.
And since the Bernaks, Krugmans and Obies of the world be in charge of the give away, higher tax, nobody work nation, what the fuck.... they're gonna Have to Fund the Muni Debt Market.

Free cash for any muni issuer
 

(Parri Passu with the Banks on the Moral Hazard Risk Measure)

 

Sun, 11/11/2012 - 09:29 | Link to Comment Dr. Engali
Dr. Engali's picture

Hey Bill tell your clients the truth?....It's time to liquidate before rates go against you. Even if the fed manages to keep rates down you're screwed and you aren't going to be able to generate a real return thanks to inflation.

Sun, 11/11/2012 - 09:57 | Link to Comment DUNTHAT
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AMEN

Sun, 11/11/2012 - 10:03 | Link to Comment RSloane
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It would be absolutely awesome to see Bill Gross on Squawk Box or Bloomberg, and while looking straight into the camera say, "Its time to liquidate. There is no real return possible."

Someone would have to perfom CPR on Becky and Cramer. Then we would see bankers leaping from tall buildings. The mask would be off and 'bread and circuses' would be over.

Sun, 11/11/2012 - 10:11 | Link to Comment Dr. Engali
Dr. Engali's picture

That would be funny. Of course he would get crucified for the bloodletting in the market as a result of that statement. He might be forced to resign due to some new affair or something along those lines.

Sun, 11/11/2012 - 10:47 | Link to Comment LawsofPhysics
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Epic, I'll get Becky, let Cramer go.

Sun, 11/11/2012 - 09:22 | Link to Comment fonzannoon
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Gross is right about the result. Small raise in taxes and no spending cuts. This is Why Obama won overwhelmingly. Anyone retired will not see any reduction in benefits (they will just get crushed by inflation) and anyone young will grow up on the dole. It's everyone in between that is in the pressure cooker.

Sun, 11/11/2012 - 09:56 | Link to Comment RSloane
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There is no solution to the fiscal cliff. There is nothing that congress nor the president are willing to do to avert our course. Having more back room discussions behind locked doors in congress will do nothing, but will be paraded as really working hard to find solutions. There are none.

+1 to you, Sir.

Sun, 11/11/2012 - 10:48 | Link to Comment Everybodys All ...
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The answers are available.

Cut federal government spending drastically and grow the energy economy. This defies Obama's agenda and would require the acknowledgment of the failure in democratic ideology. That's not ever going to happen so prepare accordingly.

Sun, 11/11/2012 - 11:24 | Link to Comment Spastica Rex
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Maybe growth is over.

Figure out how to run a steady state "civilization."

Haven't seen easy answers to that one, yet. 

Sun, 11/11/2012 - 16:08 | Link to Comment blunderdog
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The fact that the answer is OBVIOUS doesn't imply that the solution is POSSIBLE.

Look--if you wanted to cook a squid the size of the state of Montana, all you'd have to do is boil the Mediterranean ocean. 

It's simple as pie...

Sun, 11/11/2012 - 09:59 | Link to Comment zilverreiger
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Pimco senior VP Emons was on dutch tv just now with less extreme, boring general views

@27:00 (dutch)

http://www.uitzendinggemist.nl/afleveringen/1303930

Sun, 11/11/2012 - 09:59 | Link to Comment JustObserving
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"Its a Grand Canyon"

No, it is a Marianas Trench.  US debt and unfunded liabilities rise by $23 billion every day - that is bigger than the Greek deficit for 2012 .  That is enough to buy more than 70% of all the silver bullion in the world everyday.

And nothing significant will be done to reduce this - it may be reduced from $23 billion a day to $22 billion a day by raising taxes by $400 billion a year.  Social Security and Medicare will not be touched.

The Fed will continue to print confetti to paper this problem.

 

Sun, 11/11/2012 - 17:00 | Link to Comment Chuck Walla
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 Social Security and Medicare will not be touched.

Bull Shit. Obama has already looted 716 billion from the "trust fund" for Medi-care to finance Obamacare. More to come as this represents an amazing pool of money.  Seniors go first. Those Fabians truly believe in everyone producing as much as they consume or off you go with a "gentlemanly gas" as hoped for by George Bernard Shaw.

 

Il Douche has run his last campaign. he really doesn't give a shit from here on in....

FORWARD SOVIET!  to Detroit, America's Model Community.


Sun, 11/11/2012 - 10:12 | Link to Comment mvsjcl
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If you stand at the precipice of the fiscal cliff, don't jump. Instead, yell as loud as you can, "My nuts are in a vise! Would you please stop turning!" You may hear a response that says, "Why the hell should I?"

Sun, 11/11/2012 - 10:13 | Link to Comment Hubbs
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It's a strange paradox. The longer the politicians get away with kicking the can down the road, the more likely they are going to try to keep doing it.  From Psychology 101: A behavior will not continue unless it is reinforced.

Sun, 11/11/2012 - 10:16 | Link to Comment Hubbs
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Addendum: will not continue by a rational thinking person.  Hence Einstein's definition of insanity as the exception.

Sun, 11/11/2012 - 13:04 | Link to Comment nodhannum
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"From Psychology 101: A behavior will not continue unless it is reinforced."  Tell that to the Bernak.  He keeps printing with decreasing or no results to speak of.

Sun, 11/11/2012 - 15:52 | Link to Comment Hubbs
Hubbs's picture

Bernank is the errand boy who gets paid big tips for doing what he is told: by the politicians to keep this train on the tracks as long as possible.

Sun, 11/11/2012 - 10:30 | Link to Comment alentia
alentia's picture

I do not really understand all the fuzz with "Fiscal Cliff". It is absurd and how it is portrait by politicians, media and so called economists.

Of course wall street does not like "Fiscal Cliff", they need cash flowing from the US Gov./Fed to their long positions.

Is not it the same what EU imposing on Greece? Reduction of Gov. spending and increase in taxes? How is reduction in Gov. spending bad for the economy?

Or is it, that all US economy is dependent on Gov. Spending? Is it the same as taking "smart money" from US entrepreneurs and putting them into hands on bureaucrats, who does not know what ROI is and why it is needed?

Sun, 11/11/2012 - 10:57 | Link to Comment Orly
Orly's picture

Taking them off the teat...

I'm with you, I say do it already.  We'll sort it out later.

:D

Sun, 11/11/2012 - 12:47 | Link to Comment dark pools of soros
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it is called conditioning the prisoner

Sun, 11/11/2012 - 13:11 | Link to Comment Bicycle Repairman
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This is what the political class does.  It their only job.  They don't "decide".  They keep the rabble in line as cheaply and effectively as possible.  Mainly by controlling your mind.  The job has nothing to do with their beliefs in constitutions or morality or ideology..  Even evil ideologies. Just keep the rabble in line.  Cheaply.

Sun, 11/11/2012 - 16:12 | Link to Comment blunderdog
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    Or is it, that all US economy is dependent on Gov. Spending?

Bingo.

Sun, 11/11/2012 - 10:41 | Link to Comment LawsofPhysics
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How does one manage debt that cannot and will not ever be repaid?

Sun, 11/11/2012 - 13:12 | Link to Comment Bicycle Repairman
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You keep rolling it over and juicing the debtor.  Ever do any loansharking?

Sun, 11/11/2012 - 11:02 | Link to Comment orangegeek
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There's about 700 TRILLION - you read that right - in unfunded liabilities globally.  That's the bottom line.

 

The planet is leveraged out the wazoo.  Call it a cliff, or building ledge or a big pile of poo, it's huge and being gamed and when the right pin gets pulled, we are going to have a crash like never seen before.

 

Markets are always leading, not the economy.

 

http://bullandbearmash.com/chart/big-losses-sp500-weekly-year-channel-su...

 

 

Sun, 11/11/2012 - 11:33 | Link to Comment Spastica Rex
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Turns out the future couldn't pay and the future is now.

Sun, 11/11/2012 - 11:03 | Link to Comment Dre4dwolf
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Everyone quick, spend your money on alcahol before the tax man comes, when they ask you where your money is, say you got drunk and gambled it away.

 

Sun, 11/11/2012 - 11:20 | Link to Comment Dadburnitpa
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Another blinding flash of the obvious. 

Sun, 11/11/2012 - 11:25 | Link to Comment Lost Wages
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I wish it was still the 80s when all we had was a Fiscal Cliff Huxtable.

Sun, 11/11/2012 - 12:07 | Link to Comment CrashisOptimistic
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In the 80s you had cheap oil, which is the foundational explanation for everything.

Cheap is defined as low energy requirement in joules to extract joules from the ground.  That will never be true again and the direction for society is down, forever.

Sun, 11/11/2012 - 13:16 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

So this is the absolute end of science? 

We know everything now? 

We pulled back the curtain, saw G-d and yawned? 

The 19th century was hell on earth?

Some pulled the wrong switch and the sun went out?

Sun, 11/11/2012 - 14:09 | Link to Comment CrashisOptimistic
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The 19th century didn't have 7 billion people whose calories depend on oil.

The sun will go out for 6 billion of them.

Sun, 11/11/2012 - 16:39 | Link to Comment Bicycle Repairman
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If peak oil is true and I don't believe it, it will be a very slow process offset by more technology.  More oil will be targeted for food and less for pointless transportation and war of which there is way too much right now.The world's birth rate is cresting and soon lack of procreation will start reducing the world's population.  So, sorry, no massive famine.

Sun, 11/11/2012 - 11:31 | Link to Comment PUD
PUD's picture

In the final analysis staying the course (status quo) is equal to living within our means. Staying the course means exponential deficits and debt while living within our means equals job losses and depression. It's like cancer. Do nothing and die, do massive chemo and probably die.

Sun, 11/11/2012 - 11:35 | Link to Comment Mr Pink
Mr Pink's picture

or Cliff Clavin

Sun, 11/11/2012 - 12:12 | Link to Comment virgilcaine
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Anyone know when this rate rising thing is to happen?. it's been 30 Years of lower rates.. still waiting. Maybe rates go to zero to reflect it's value? The Music is  still playing but it's the Titanic Band! Enjoy that music... lalla..

Sun, 11/11/2012 - 13:18 | Link to Comment Bicycle Repairman
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"Anyone know when this rate rising thing is to happen?."

After everything unravels, so you'll have plenty of advance warning.

Sun, 11/11/2012 - 12:10 | Link to Comment tongue.stan
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Deep Thoughts

"I'm rich enough, I'm rich enough, and doggone it, I'm really rich!"

"If I come back as an animal in my next lifetime I hope it’s some type of parasite because this is the part where I take it EASY."

"What is it that makes a complete stranger dive into an icy river to save a solid-gold baby Maybe we’ll never know."

"I guess the hard thing for a lot of people to accept is why God would allow me to go running through their yards yelling and spinning around."

"I can picture in my mind a world without war a world without hate. And I can picture us attacking that world because they’d never expect it."

"I hope that someday we will be able to put away our fears and prejudices and just laugh at people."

"It’s easy to sit there and say you’d like to have more money. And I guess that’s what I like about it. It’s easy. Just sitting there rocking back and forth wanting that money."

"If I was the head of a country that lost a war and I had to sign a peace treaty just as I was signing I’d glance over the treaty and then suddenly act surprised. ‘Wait a minute I thought WE won’"

"If you think a weakness can be turned into a strength I hate to tell you this but that’s another weakness."

 

I could copy and paste all day, but at some point I have to get out of bed.

Sun, 11/11/2012 - 12:24 | Link to Comment a growing concern
a growing concern's picture

 "I guess we were all guilty, in a way. We all shot him, we all skinned him, and we all got a complimentary bumper sticker that said, 'I helped skin Bob.'"

Sun, 11/11/2012 - 12:16 | Link to Comment Perdogg
Perdogg's picture

How do you embed a tweet like that?

Sun, 11/11/2012 - 12:24 | Link to Comment San Diego Gold Bug
San Diego Gold Bug's picture

$1800 gold by the end of November!!  Get your phys NOT paper gold.

Sun, 11/11/2012 - 13:08 | Link to Comment disabledvet
disabledvet's picture

Just because the Government ignores you doesn't mean your forgotten. http://www.youtube.com/watch?v=BIz8WJj2lMU

Sun, 11/11/2012 - 13:20 | Link to Comment Joebloinvestor
Joebloinvestor's picture

China just watches and continues to build up its' gold holdings.

When the music stops and the US doesn't have a chair left to sit on, we will stare blankly and question,"How did this happen".

It happened because the US is stupid enough to believe that because it is the current "reserve currency" it can (and it does) get away with pulling some of the stupidest shit in the name of politics.

We are also stupid enough that we think we can save ourselves from any disaster brought about from a previous administration.

That will go away when we are no longer the reserve currency and the wealthy have left.

I do not forsee the un-employment #'s getting better or the deficit being reduced.

Freebies for everyone who will be able to vote (for the next socialist agenda).

As the public sector increases........

Sun, 11/11/2012 - 13:39 | Link to Comment Let The Wurlitz...
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It is a little late for your outspoken courage Bill.  Why dont you go back to blowing Bernanke dumb ass.

Do NOT follow this link or you will be banned from the site!