Gundlach Warns "America's Credibility Is Slowly Eroding"

Tyler Durden's picture

Reflecting on the collapse of the USD, the surge in gold, the Chinese ratings agency downgrade, and the groundhog-day-like world in which the US government (and markets) live, DoubleLine's Jeff Gundlach warns that "America's credibility is slowly eroding." In his typical manner, Gundlach rapidly and efficiently covers a lot of ground in these brief clips; from the growing skepticism of the rest of the world towards the US' full faith and credit, to no end in sight for QE and reignition of bond inflows under an even more interventionist Yellen, to his views on Tesla, Google, and Apple.

On America's credibility (and growing skepticism around the world)...

  • *DOUBLELINE'S GUNDLACH SAYS U.S. CREDIBILITY SLOWLY ERODING

On Fed Policy..

  • *GUNDLACH SAYS SHORT-TERM RATES TO STAY LOW
  • *GUNDLACH SAYS QE WON'T BE REDUCED IN NEXT FEW MONTHS
  • *GUNDLACH SAYS CREDIT MARKET TO BE SAFER PLACE THAN IN PAST WKS
  • *GUNDLACH SAYS YELLEN CLEARLY IN FAVOR OF GOVT INTERVENTION
  • *GUNDLACH SAYS VERY LIKELY THAT FED INTERVENTION TO CONTINUE
  • *GUNDLACH SAYS FED INTERVENTION MAY INCREASE UNDER YELLEN
  • *GUNDLACH SAYS FED WON'T START TALKING ABOUT TAPERING SOON


On US Stocks:

  • *GUNDLACH SAYS QE TIGHTLY CORRELATED WITH STOCK MARKET GAINS
  • *GUNDLACH SAYS QE IS WITH US
  • *GUNDLACH SAYS STOCK MARKETS HAVEN'T MADE PROGRESS SINCE MAY
  • *GUNDLACH SAYS I LIKE APPLE OK
  • *GUNDLACH SAYS DISAGREES WITH PEOPLE WHO CALL APPLE NO BRAINER
  • *GUNDLACH SAYS TESLA IS NOT SOMETHING I WOULD OWN
  • *GUNDLACH SAYS TESLA DIFFICULT TO BE AGAINST B/C OF MOMENTUM
  • *GUNDLACH SAYS GOOGLE DOESN'T LOOK GOOD TO ME
  • *GUNDLACH SAYS GOOGLE SHOULD BE `HARVESTED' FOR CAPITAL GAINS

On US Bonds:

  • *GUNDLACH SAYS BOND INFLOWS MAY COME BACK
  • *GUNDLACH SEES MODERATE BOND FUND INFLOWS IN REST OF YEAR
  • *GUNDLACH SAYS CLOSED-END BOND FUNDS `REALLY CHEAP'

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Boris Alatovkrap's picture

<-- USSA is already lose credibility

<-- MOAR QE is necessary

LetThemEatRand's picture

Yeah.  Hey Gundloch, 1980 is calling about that slowly thing.  

TeamDepends's picture

Our research shows the US has indeed broken into a sprint downhill.

Manthong's picture

Is this guy that twin brother Einstein was talking about in the spaceship nearing the speed of light whilst the other brother and the rest of us are here on Earth?

NotApplicable's picture

Friday humor a day early this week, Tyler?

Keyser's picture

Slowly eroding? Please, quit bullshiting us. America has no credibility left. 

 

Aeternus's picture

Uh huh, especially when we have mk ultraed stenographers raving about freemasons and satan on the house floor.

 

http://www.youtube.com/watch?v=5whbnXTqxVo

TeamDepends's picture

Is it MKULTRA or does she simply have the firmest grasp of reality of anyone in the room?

the not so mighty maximiza's picture

you know she overheard all the bribing going on

NOTaREALmerican's picture

Re:  raving about freemasons and satan on the house floor

When, in fact, it's the Lizard People who are behind all this.

Millivanilli's picture

Credibility?  What bankster set of nuts did this jerkoff slide out of?  America under the Federal reserve is a nation underseige.  A country with this type of overlord is always predicated on fraud and a lack of credibility.   

 

Ask savers who float this system with their "investment" about ZIRP and credibility. Or a Inflation ripping apart their purchasing power? Or a system that tells them that Inflation is low?  All of which is designed to SAVE THE COCKSUCKERS who manipulate the markets, sell fraudulent securities, and rig rates.   

 

Hey buddy, buy these securities, they AAA.  Meanwhile, in the back of the house,  SHORT THOSE FUCKERS NOW.  In wing b of the investment bank they are laundering 1/3 of Mexico's gdp for Drug cartels.  None of which is prosecuted- FUCK YOU ERIC HOLDER>

 

Credibility. Seriously..

 

 

StychoKiller's picture

I sense some hostility towards Banksters in you...

Nothing but the truth.'s picture

There's nothing slow about the erosion and the pace is accelerating rapidly. Dollar is doomed.

Exponere Mendaces's picture

Par for the course in the U. S. DUMB of A.

Idiocracy was right.

Dr. No's picture

Well appl is a "no brainer".  However, I interpret "no brainer" differently than the MSM.

Renewable Life's picture

If you think Putin put an ass beating on Bammer on the Syria thing, wait until China finally makes a move on shit!!  I know their smart, so they'll propose some "duality" option, in which the world will have two options for its reserve currency, and may the best fiat win!

Which, given the reality of the shape we (USA) are in, will be a really funny development! But it will play into the "American exceptionalism" bullshit and instead of dropping bombs, we will think we can "compete" against them, rah rah the flag, etc! 

That way the dollar can drift slowly into the dustbin of history, instead of plummet!  But anyone with an IQ over 65 will know how that will end!

Which I susepct is why, the big banks have suddenly started to "limit" international outflows of dollars, because some big announcement is coming, I can feel it! Nothing happens for no reason! 

Keyser's picture

The Chinese are looking at the big picture, unlike the US which cannot see beyond the end of their nose. The Chinese don't want to lose their $3+ trillion investment in US bonds, but they need a hedge. In comes the reason for their gold purchases, to hedge their US bond exposure. If the USD survives and the bonds pay out, so be it and they have lost nothing on their gold investment. If the USD implodes, gold goes parabolic and they still make money as the dollar dies. They have already stated that they do not want the Yuan to be the next reserve currency, but would defer to the SDR from the IMF for that role. 

 

Charles Nelson Reilly's picture

i thought we were told not to pay attention to bloggers or financial types?

StychoKiller's picture

Hmm, I'm sorry, what were you typing again?

Calmyourself's picture

Slowly, mine is compeltely gone.. What the hell is wrong with these slow learners?  Maybe the chemtrails are real they kill the common sense basic econ gene..

chunga's picture

Slowly? LOL!

I'm ashamed and embarassed at the shit that goes on every single day.

ebworthen's picture

Yellen and QE4!

It's like the Queen Elizabeth 4, but really more like the Titanic!

When the Russians and Chinese agree to move the Dollar out of reserve currency status QE"X" won't matter.

krispkritter's picture

Slowly? Like this?

Mythbusters Rocket Car Pancake

http://www.youtube.com/watch?v=Mh835unue5w 

All they needed to do was paint the car Red, White, and Blue...

One And Only's picture

Buh buh Buh our dear leader was born of immaculate conception. How could he be sending us to the bottom of the world's toilet ball? Unpossible.

stant's picture

wow------ ya think?

Bay of Pigs's picture

It's a good thing crazy "bloggers" like Tyler Durden of Zero Hedge pick these stories up from the BlowHorn [CNBC].

(since nobody watches them anymore, we would have missed it).

fonzannoon's picture

So U.S credibility is eroding, and based on that it is prudent to buys stocks and bonds.

Thanks Jeff 

(does anyone know what Jeff sells btw?)

Bay of Pigs's picture

I saw that too fonz. Moar bawnds?

WTF?

ebworthen's picture

Meanwhile, as IBM furloughs employees and cuts retirees off from promised insurance benefits, anyone holding the stock is -7% today.

Yup, things are fine, this economy is recovering, Europe is improving, China's growing middle class will save the consumptive world, the U.S. is solvent, and...oh...sorry...my Leprechaun friend is demanding my attention.

falak pema's picture

Since this crisis and thanks to the Tea PArty the "slowly" has become fast track.

Bay of Pigs's picture

You mean the "scapegoats" right? Thats all Obama and Boner wanted to do with this manufactured crisis. Paint anyone who is fiscally responsible as "evil and wrong" and "trying to shut the US gov't".

Give it a rest retard. You're a fuckan idiot falak.

falak pema's picture

I belong to no cabal. Get that into your head.

The Tea Party is totally discredited. If you guys feel you have a message to sell to the nation, based on your values then you are doing it the WRONG WAY.

Thats the lesson. The first thing to understand is the world is what it is. Its Pax Americana...and like all juggernauts it has a momentum that none can turn around on a six pence! 

You want to change that? Well its not by doing what these retards have done over the last few months. 

Grow up! Look at the political process as IT IS. Change comes over a period and it requires patience. It requires the adherence of the PEOPLE.

Not vigilante stuff! That's the road to Dictatorship. If you think the other side is on that road, then you have to build your power base from bottom up. Not from low leveraged ideological plays that are totally counter productive. 

Win the people then win the Congress; not the other way. And if you can't win the people you don't deserve to be in power in a nominal democracy. 

Bay of Pigs's picture

Youre the one that brought the Tea Party up, not me. What you said above made no fucking sense whatsoever. They have zero clout in CONgress. As in none.

Get THAT through your thick head and try to connect some dots why they were blamed in the first place.

falak pema's picture

THe WHOLE WORLD is saying the TEA PArty overplayed their hand and tried to run when they couldn't even learn to WALK in terms of political clout. By so doing, by being ideologically obtuse  they instilled this incredible fire sale of the GOP.

Do you even read what the world says? 

I'm not questioning the sincerity of the values of RP and consorts; I'm questioning their ability to weigh on the political process in a democracy; bad as it is. FAIL.

Bay of Pigs's picture

Yeah, keep drinking the MSM Kool Aid falak. Boehner, Cantor, McConnell, etc...are NOT part of the Tea Party. You FAIL at Poli-Sci 101 and common sense.

As the poster said below, you really are a special kind of stupid.

falak pema's picture

Boehner played along with the TP and tried to muscle it out and then backed off. He played the TP hand, he fronted it, until he folded as the others were not behind him. It was evident from day one the TP clique didn't have the fire power. 

He will now wear that hat. Its not the man, the fall guy, its the strategy of Slugging it out when you don't have the staying power and all its done is to hurt american prestige; maybe thats what the TP wants.

 

aardvarkk's picture

It takes a special kind of stupid to assign blame for this Charlie Foxtrot situation on the one group who really has very little power while absolving everyone else.  A SPECIAL kind of really, really stupid.

NOTaREALmerican's picture

Re:  situation on the one group who really has very little power while absolving everyone else.

You mean like OldFart white-trash running around in  socialist motorscooters blaming "those people" for taking the 2 TRILLION dollars worth of loot that it distributed to the politically connected each year.

Yeah,  it IS pretty stupid. 

Smiley's picture

What do you mean 'Slowly?'

 

Why in the world would anybody invest money in a country full of idiots who can't stick to a budget and in fact, get offended at even considering the prospect?

aardvarkk's picture

You hit the point that just mystifies me.  Not only do we not have a single leader (including the tea party) advocating for a BALANCED budget (they're all about "deficit 'reduction'"), but they and seemingly every yahoo in the country jumps down the throat of ANYBODY who suggests perhaps we should live within our means.  Because when you think people and countries should live within your means, I guess you're racist or something.

NOTaREALmerican's picture

Re:  the throat of ANYBODY who suggests perhaps we should live within our means

How many really smart-n-savvy people do you know living the good life off of Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-Energy, Big-Ed, Big-House, Big-Fin, Big-OldFart, Big-OldFartHealthcare, Big-AntiDrug, & Big-PoliceState?

How many smart-n-savvy people are dumb enough to want their own crony-capitalist scam to end?

The country's been a crony-capitalist scam for 60+ years.   It's great if you're living off of other people's money.   And EVERYBODY loves living off of other people's money.   It's the best kinda money there is.

MFLTucson's picture

Thank you to Barack Obama and the morons who would vote this man into office!  

ziggy59's picture

Lol...Long-term reputation of US markets appears intact despite high-stakes budget fight

http://finance.yahoo.com/news/long-term-reputation-us-markets-181036467....

Appearances are obviously disceptive...

sbenard's picture

I disagree! America's credibility is NOT eroding SLOWLY. It's eroding RAPIDLY!

Atomizer's picture

The Central Planners policies are reaching critical failure mode Globally. It’s a three step process.

 

  • A massive fiscal stimulus.
  • More aggressive monetary easing.
  • Structural reforms to boost competitiveness.

 Recently, the IMF ran another effort to rejuvenate the theory of Abenomics. When watching link below, remember that 2% is the magic number to become a hero.  Enjoy

http://www.imf.org/external/mmedia/view.aspx?vid=2579051368001

Now that you understand. Listen to what you hear the sock puppets telling you. All will make sense going onward.

kaiten's picture

Gundlach: "America´s credibility is slowly eroding"

Slowly? Optimist.