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It's All Coming To An End, Bill Gross Warns
Say what you want about Bill Gross, but the legendary bond investor is absolutely spot on in the following paragraph from his latest, December, investment outlook:
How could they? How could policymakers have allowed so much debt to be created in the first place, and then failed to regulate their own system accordingly? How could they have thought that money printing and debt creation could create wealth instead of just more and more debt? How could fiscal authorities have stood by and attempted to balance budgets as opposed to borrowing cheaply and investing the proceeds in infrastructure and innovation? It has been a nursery rhyme experience for sure, but more than likely without a fairytale ending.
Here is the full letter (link):
How Could They?
Punch and Judy fought for a pie.
Punch gave Judy a sock in the eye.
Said Punch to Judy, “Would you like any more?”
Said Judy to Punch, “No my eye is too sore.”
– Mother Goose nursery rhyme
Ah, nursery rhymes! Intended for kids no less! The above little ditty could serve as a modern day NFL domestic playbook, I suppose, while a century ago it was but one of many “lesson plans” on what not to do when you grow up. There was Jack and Jill, and Little Miss Muffet – all of whom had to be careful – the Muffet Ms. especially so if she ever sat on a tuffet; spiders were lurking! Then there was the Old Woman Who Lived in a Shoe, the moral being that if you lived in one, lots of kids would drag you down for the rest of your life. Honestly – conception must have been pretty awkward for the old gal, maneuvering between laces and all. And instead of scented candles, well, you get the picture. Even Buster Brown’s dog, Tige, wouldn’t have lived in there.
The Punch and Judy rhyme pretty much exposes the early 20th century for what it was: male dominated and domestic violence permitted. Actually, back then, the way comic strips allowed women to get revenge was a metaphorical frying pan in the kitchen. Watch out, Dagwood – here comes Blondie! Today, all of that is frowned upon and so much the better. Outside of comic strips and nursery rhymes, the AMC series “Mad Men” takes us back to the bad old days when everyone smoked in the office and right next to you on airplanes, no less. “How could they?!!” is the almost immediate response, because we have adapted and adjusted to a different set of social, moral and ethical standards. Race, gender, sexual orientation, you name it … things are moving forward. You could shriek a “How could they?” for all of the above while understanding perhaps why they did. Maybe they didn’t know any better, maybe the time wasn’t right, maybe they just needed a Martin Luther King, a Betty Friedan, or a Harvey Milk to lead the way. In each case the “How could they?” can only be answered by “they did – but now they don’t as much.”
What I find equally interesting is to project forward and try to guess what things we are doing now as a society that our grandchildren will ask, “How could they?” That indeed is a tough one, because like cigarette smoking on “Mad Men” in the ’60s, it’s difficult to conceive of an alternative environment. Perhaps it will be food and cuisine oriented. Corn in everything we eat and drink; genetic modification – “How could they?” Perhaps it will be robot driven cars, prompting our grandchildren to ask, “How could they? No wonder there were so many fatalities.” Maybe going to college will top the charts of future unthinkables. “Spending $200,000 for four years of partying – how could they?” We shall see, or better yet, our kids will. They will mold their own world as their environment, and developing ethical standards will mold them in turn; a wheel within a wheel. Punch and Judy would be amazed.
Speaking of the future and life’s lessons, there is an ongoing process of discovery taking place amongst the world’s central bankers which they hope will rejuvenate their respective economies without creating the inflationary horror of the 1970s. If Federal Reserve Chair Janet Yellen were the fictional Little Miss Muffet, she would be hoping to eat the “curds and whey” of 2% to 3% real economic growth while avoiding spiderous increases in future prices. If European Central Bank President Mario Draghi were the old fashioned “Punch,” he might figuratively be attacking German Chancellor Angela Merkel and her tight monetary and fiscal heritage. “Take that Judy/Angela!” I don’t know who to compare Bank of Japan’s Governor Haruhiko Kuroda to – perhaps little Jack Horner hoping to stick his thumb into a Christmas pie, pulling out a plumb and exclaiming, “What a good boy am I!” Ah, policymakers. Perhaps the last five years have been one giant nursery rhyme.
But each of these central bankers is trying to achieve the same basic objective: Solve a debt crisis by creating more debt. Can it be done? A few years ago, I wrote that this uncommonsensical feat could be accomplished, but with a number of caveats: 1) Initial conditions must not be onerous; 2) Both monetary and fiscal policies must be coordinated and lead to acceptable structural growth rates; and 3) Private investors must continue to participate in the capital market charade that such policies produced.
Let me explain each of these three caveats in turn.
- By initial conditions, I am referring to existing structural headwinds that would thwart the successful rejuvenation of old normal, nominal growth rates. Certainly a country’s current debt/GDP ratio factors enormously into the oddsmaking for success. It is difficult, for instance, to imagine Japan getting out of its quagmire of debt by simply creating more of it and buying 100% or more of the new and current supply. Similarly, Greece (which has already suffered several restructurings) as well as neighboring Euroland peripherals begin the healing process well behind the debt/GDP eight ball. But there are other significant initial conditions – structural headwinds – that my version of the “New Normal” envisioned as early as 2009: aging demographics, technology/the race (rage) against the machine, and the ongoing reversal of globalization, are all growth-stunting factors to consider. Economist and former Treasury Secretary Larry Summers has labeled this “Secular Stagnation” and rightly so, but it is just another way to describe the New Normal and its deleterious effect on future growth.
Monetary and fiscal policies must work side by side; they must be stimulative as opposed to being counterproductive. It makes little sense, for instance, for Euroland to be running a tight fiscal policy resembling the balanced budget mandate of Germany, while at the same time initiating quantitative easing and negative interest rate monetary policies. The same holds true for the Bank of Japan’s massive monetary stimulus on the one hand, and Japan’s raising of its consumption tax on the other. One could even apply that complaint to the U.S. with its fiscally restrictive rebalancing of its budget deficit from 10% to 3% over the past five years. If not for fracking, Uncle Sam might be labeled the Old Man in the Shoe for not knowing what to do. In fact, in the U.S., as elsewhere, there has been little focus on public investment and infrastructure spending. It’s been all monetary policy, all of the time, with most of the positives flowing over to markets as opposed to the real economy. The debt currently being created is not promoting real growth and solving a debt crisis – it is being used by corporations to repurchase shares and accentuate the growing inequality between the very rich and the middle class. - Keeping private investors playing the “game” in our financial markets even though they smack of a pyramid scheme might seem like a no-brainer. “Where else can they go” has been and continues to be the commonsensical refrain. Not sure, but perhaps Google Maps can show the way. But on the fringe and at the margin, there are alternatives to negative interest rates or artificially low cap rates, or escalating P/E ratios based on historically high profit margins. And even if investors must buy something, they don’t necessarily have to buy it in their own or any specific country. If 3-year German government bonds yield -.05%, then how about a 3-year Brazilian government bond at 12.5%? At the moment the negative yielding German bond gets the market’s vote, but you must see the point. Creating more debt with artificially low yields leads to currency wars and exchange rate volatilities that distort global capitalism. Solving a debt crisis by creating more debt cannot cure the disease if higher volatility distorts the historical flow of markets and associated commerce.
- And of course economic theory might suggest that artificially low interest rates gradually but inevitably lead not to more consumption and real growth, but to more savings in order to meet future liabilities such as education, health care, and eventual retirement. If a household needs $250,000 for any or all of these future commitments, it will be twice as hard to meet them with 5-year Treasurys at 1.5% instead of 3%.
With each of my three primary caveats coming up short in an answer to my earlier question: “Can a debt crisis be cured with more debt?” it is difficult to envision a return to normalcy within my lifetime (shorter than it is for most of you). I suspect future generations will be asking current policymakers the same thing that many of us now ask about public smoking, or discrimination against gays, or any other wrong turn in the process of being righted.
How could they? How could policymakers have allowed so much debt to be created in the first place, and then failed to regulate their own system accordingly? How could they have thought that money printing and debt creation could create wealth instead of just more and more debt? How could fiscal authorities have stood by and attempted to balance budgets as opposed to borrowing cheaply and investing the proceeds in infrastructure and innovation? It has been a nursery rhyme experience for sure, but more than likely without a fairytale ending.
Markets are reaching the point of low return and diminishing liquidity. Investors may want to begin to take some chips off the table: raise asset quality, reduce duration, and prepare for at least a halt of asset appreciation engineered upon a false central bank premise of artificial yields, QE and the trickling down of faux wealth to the working class. If the nursery rhyme theme is apropos to the future, as well as the past, investors should remember that while “Jack and Jill went up the hill,” that “Jack fell down, broke his crown, and Jill came tumbling after.”
Someday soon, perhaps.
-William H. Gross
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Bond yields are on the verge of a castrophic rise. The 10 Yr Treasury will create havoc like nothing before once yields reach 3.5- 4%. All those low interest rate mortgage notes hedged with 10 YRs will go up in smoke as yields become unservicable and banks are forced to sell them at bargain basement prices.
http://www.globaldeflationnews.com/10-yr-u-s-treasury-index-yieldelliott...
+1. Like the way you're thinking, but, don't you think the 10 year yield takes a dump first?
There's room for more downside but the current pattern looks to have bottomed. A close above 2.384 confirms.
There once was a young man named Bill
who lived his whole life as a shill
His ponzi was big he lived with the squids
But now he writes fairy tails and sucks it
Gross DOESN'T understand it. He persists in thinking that "expanding the money supply" can create wealth.
What never was to begin with can't end.....get it?
http://newworldorderg20.wordpress.com/2014/11/14/1945-british-national-archives-document-reveals-prime-minister-clement-attlee-desire-for-new-world-order-with-russia-u-k-and-u-s/
http://newworldorderg20.wordpress.com
to policymakers the world is always expanding, and therefore monetary policy should follow. every new baby born needs a trusseau of dollars to earn and spend throughout their life. once they realize that the world is shrinking (maybe not in physical terms, or even population, we all live in close contact with one another) then some adjustment is needed, and zero interest policy is just the first step. monetary policy is in a controlled deflationary crash, and any crash you can walk away from is a good one. that's the hope. how could we do all those things you do when the frontier was new and resources were neded to build an expanding economy? its a far different world today, not even fair to compare the two, but we do it.
6 Years between Crashes, but this time they had ZIRP & QE to clean up around the edges.
For 50 Years after 1929 most Americans ignored the Stock Market.
Today, it seems Investors use other peoples money or create money out of thin air (like Rehypthicating). It is no longer a market for Individuals. US Stock Markets are for Professionals, Day Traders or Algo Trading.
I tend to agree with you on slow crash idea above. But after USA placed this Meme that Fraking made the USA the new Saudi Arabia... I'm guessing that LIRP & ZIRP will continue as Policy to Support the Oil & Gas Industry. But it has also helped the Stock Market & Financial Schemes, so it may be we are witnessing the Latest Policy to attempt to take the crashes out of the system (permanent Policy).
Comparing this "crash" to any other previous crash is comparing apples to oranges.
Nobody knows this yet except some of us.
This is the next one to happen.
Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the king's horses and all the king's men
Couldn't put Humpty together again.
humpty dumpty was actually a cannon
Hmmm
How could all this debt happen is the common question on ZH? The answer is the Sheeple were duped by wolves’ promises and wanted this to happen. The Sheeple no longer wanted a sheep dog in government to manage responsibility. Instead the Sheeple elected wolves in to government who told the Sheeple “…you won’t pay the cost of these new give-a-way programs someone else will pay it for you…”
The rules of wolves in government are 1. Stay in power by buying votes 2. Rob the Sheeple to pay for new programs for others to get their votes 3. When someone else’s funds are no longer available to pay for programs turn to debt.
In most of the world we have been on the wolves rule number 3 for decades…
When Gross was a guest on CNBC, I recall that he was just as much a Keynesian money-printer as anyone. He is a fiat prostitute just like Alan Greenspan.
What a douche. The first dip $hit with his hand out, as I recall. Yes, Fuk you Bill!
Hi Bill G.,
Just show the people this:
http://patrick.net/forum/?p=1223928
I will pay a lot more attention to the Gross Lies & Bullshit when he is giving his final speech before the public execution.
Isn't he the bond king? The one who probably has prospered the most from Debt?
Is this the same Gross that I saw in an interview in 2008 saying, with a womanly voice, the government should load up on MBS to prevent a housing slump ? There's your debt Bill.
" it is difficult to envision a return to normalcy within my lifetime"
I do agree with him on that one. It is only a matter of time before the fed returns to a new QE round. We will not return to free markets and price discovery via individual traders acting on fundamentals. That age will sit in our history books, but it is OVER!
You could be right. I think interest rates kick in too flush unpayable debt. Billy Carter beer will be back in demand. / lol
How could they?
Easy, they got paid, bitch.
sorry for the profanity, and its supposed to be said in something of a pimp accent.
The pimp came through, truly. I heard it. All rough and shit. A little Jesse Pinkman in it too.
This is all well and good, but Mr. Pimco was not singing this song during all the years the system seemed to be working...didn't he see the logical outcome of these ridiculous policies, the danger that was gathering on the horizon, back then? And wasn't that his JOB as a bond guy, to assess the long-term economics of the entities whose bonds he's dealing with? So?
If he had said all this BEFORE things went bad, he'd have more credibility. But saying it now is just a "Thanks, Captain Obvious!" moment.
He essentially worked for the Fed. One of the squids
Yes, but not only is the flame a lot closer to his hands now, he is in the Hot Seat, lost half of his Network, became a kind of Outcast,... and probably has to worry about being Sued in Court.
But I have no real knowledge here. I know I got Ripped off.
Bullshit. Don't fall for it. He just helping to string along the bears that are left hedging the market to steal more money from them. I'm not falling for it.
It's a brave new world run by algos and HFT machines reacting to certain press releases with fundementals completely thrown out the window. Completely rigged for the benefit of a very few.
I'm leaving this psychotic game up to the psychopaths. I fold.
5 steps of denial
Enjoy..
Well let it happen already. I'm fretting too much over the might happen....Better to face reality.
Gold.
See, that was not so difficult, was it?
They are pulling the wool over your eyes.
Don't be idiots!
Monetary and fiscal policies must work side by side; they must be stimulative as opposed to being counterproductive. It makes little sense,
- Money in Politic, Debt & Hoarding Capital.
- "Lobbying, Gift Giving, and Campaign Contributions"
- See governments can't agree on a way forward since the Interest Groups Own the Politicians and anyone else involved in providing evidence or research.
Like you say "Gold", money in Politics & Government explains a lot. Most have Debt & Depend on a Career, therefore they can't be Whistleblowers, can never betray the system or partners, and they will never fight the system either as that would signal a "Betrayal" to their Interest Groups.
Where are Bill's customer's yachts?
Oh GOD! Did they take their gold out boating?
Might be Rockstar that hit the bridge in Miami.
tell me Bill, if you were to rape a woman, would you come back an hour later and wish to be her therapist?
friggin oligarchs, always wanting moar and giving nothing.
“How could policymakers have allowed so much debt to be created in the first place, and then failed to regulate their own system accordingly?”
Easy.
They aim at nothing less that the utter destruction of America; they plan to eventually erase the memory of America so that a few hundred years from now, if anyone remembers America, it will be regarded as a mythological story.
Who are they?
You probably think the Treaty of Peace halted hostilities between England and her former colonies. It did no such thing, if you check the journal of parliament, you’ll find they only halted the land war in America; they continued hostilities on the high seas for another 20-30 years. Then they continued it by subterfuge. The English were mainly responsible for financing racial hostilities in America which led to the Civil War. Shortly after it erupted, the English posted 6,000 troops on the Canadian border and 8,000 troops on the Mexican border. Their plan was to let America exhaust itself thru fratricide and then march in and recover her colonies. But a funny thing intervened: the Russian czar, Alexander, sent a small fleet of warship to visit ports of San Francisco, Philadelphia and New York as a warning to England.
After the war, the czar sent an invoice to Washington for his services. This is how and why the US bought Alaska: payment for the invoice was included in the purchase price.
The English and Judeo-Bolsheviks then arranged the assassination of Alexander in 1881 for his role in frustrating the English attempt to recover her lost colonies. When his grandson, Nicholas, instituted major land reforms and called a representative assembly, the English and Judeo-Bolsheviks orchestrated the Russian slaughter of 1917, again as payback for the assistance given by Alexander to America.
The London Times declared this policy shortly after Lincoln issued his greenbacks,
“It (the US) will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.” -- The London Times
The American Revolution set in motion quite a number of alarming, and little known, reactions.
The Holy Alliance (of Catholic powers) of 1815 declared war on the free press and the establishment of representative governments; the Treaty of Verona (1821) did essentially the same. In other words, the destruction of America has been the aim of global criminal and useless idiots for more than two hundred years – and Americans haven’t a clue. (one and two)
Some of us are about to live thru the final stages of this destruction; most will not survive it.
How do we protect ourselves from these consequences? I’ve suggested it so many times: we have to duplicate what American Founders did, minus their mistakes. We have the same power they had; the power to make criminal and useful-idiot classes accountable for their crimes; and we REFUSE to use that power.
There are three main reasons for this failure: one is that Americans have no knowledge of such power; the second, they’ve been herded into a kind of impotent stupor by medication and indoctrination; the third, that they aid, benefit or are/were complicit in such evil.
There’s a remedy for all three of these failures: 1) learn, and use, the law and procedures of redress (full article); 2) follow a health regimen that has REDUCED – not slowed – my biological age 50 years (it also un-does the damage done by medication and indoctrination); and, 3) see number one.
This health regimen has given me the coordination, health and physical condition of a professional athlete around the age of 20; I’m 70 years of age (for validation, video and webpage – each leads to the other).
After the article and reader comments I still don't think it's widely accepted that the current situation is not reactive, it is proactive and carefully planned. World conquest has always been and will continue to be at the apex of those who run the system from behind the scenes. If you're going to take over the world, you need money and lots of it... enough to buy governments, make laws that legalize and legitimize your war mongering, killing, corruption and deceiption and to have the most advanced weaponry on the planet with which to arm the largest military on the planet. Of course governmental ambitions are synonomous with corporate ambitions who pull all the strings in Washington. Why are we so deep in debt? Easy... the same reason Rome was and crashed and burned... military expansion and trying to take over the world. Unfortunately people are generally obtuse and don't realize how their tax dollars are being spent, how they are being used... manipulated and lied to. Keep watching football, reality TV, focusing on eating out, drinking alcohol, that new house, car, etc., while the sociopaths proceed forth with their agenda and destroy everything in their path killing hundreds of thousands of innocent people and convincing you their war is a noble war designed to ward off terrorism, to keep you safe from "terrorists" and a plethora of other rationalizations they generate. The question is... should we blame the socialpaths or ourselves for allowing them to wreak havoc on us all via the aforementioned methodologies? Once people actually start taking accountability for the state of affairs and do something about it collectively, then some positive changes will take place... until then we will continue on our current projectory... and end up like Rome. It's like history teaches people nothing and they have no memory.
The war mongering never stops for those who are willing to risk everything for world conquest and when they run out of money, they will implement programs like QE and "borrow it"via a stealth tax and erode the dollar (which will hurt the 99% a LOT more than the 1%)... thereby stealing from all of us out here via inflation... even if it means destroying the dollar as the world's reserve currency, your savings, your investments, your pension, etc.
QE and programs like it are designed to keep the war machine afloat otherwise world conquest would be a pipe dream... in the end, you, your kids and their grandkids will be in debt for their lifetimes and if you don't like it and rebel, prepare to meet the 2nd arm of the war machine... a militarized police force ready to do the bidding of those who sign their paychecks and grant them immunity for "choking us to death"... litterally and figuratively.
As long as the WAR MACHINE is in motion and is financed through QE or some other source, it will not stop... citizens will be used as "soldiers", citizens will be taxed, citizens will be lied to and manipulated, citizens will be herded like cattle to slaughter... "the ambitious socialpaths" have never and will never stop until they have all the marbles and if they have to kill off a large portion of ignorant sheeple to get the job done, their genuine lack of empathy, humanity and sociopathological tendencies will only speed that process up... especially if the sheeple are too stupid, entertained, fat-n-lazy, etc., to even attempt to stop them.
Given the best predictor of future behavior is past behavior... I'm not optimistic about the outcome.
Yeah, everyone has a plan until they are nuked in the face.
...
"... because we have adapted and adjusted to a different set of social, moral and ethical standards. Race, gender, sexual orientation, you name it … things are moving forward."
Things are moving. But I think its premature to use the word forward
Bowl movements always move forward. And end up in the same place as our moving forward economy.
The end??? really? end of what ? let say the begining of the end
Yeah, this is fucking Christmas season, right? Yesterday, on my drive between Asheville and Raleigh, I had to stop at a Walmart to get an extra suitcase for all the little stuff my mom left me; jewelry, clothes, etc. That Walmart was as dead as a doornail. No waiting on line to get to a cashier, etc. Since Walmart is the ultimate business model, I think these "big bidness types" ought to get out a little more often. They're corpses and don't know it!
What's all coming to an end?
The end seems endless!
Lol, I can't breath !
We have a debt crisis, caused by too much debt, which is only getting worse from issuance of more debt, and that is why I am still making millions by advising and investing my clients money in debt...
??????????????????????????
Too much debt, not enough equity. So it is likely that debt will have to be devalued relative to equity.
But can't we play the music a little longer? Why don't we rehypothecate a chair? That way we will have a place for everyone to sit!
"The question Americans should be asking is why the Federal Government, which is authorized by the Constitution to create and issue interest-free money, instead borrows that money at interest from a privately owned central bank, thereby plunging future generations into debt slavery to that bank? THAT is the real question Americans should be asking!"
This quote is already making the rounds but we need to put this in front of the eyes of every American that we can over the next week as Congress debates just how much further they will sell us all into the slavery of the private central bankers.
The deal was transacted in secret. Then to cover it up the next 2 generations were massacred in industrial quantities. After that the bastards classified everything about it top secret, and many more treasonous acts besides, and sent the next 2 generations of potential troublemakers to be massacred in industrial quantities. But this fell apart so they killed more potential troublemakers at home, and drove the rest they could find to Canada, and points beyond. The next generation grew up mesmerized by boxes of wires that flash colored lights and make noises. The ones who realized their situation were easily identified in the mandatory state prisons for juveniles & culled from the herd. Still with me? You are reading this on box of wires 2.0; while everyone on the planet is being pushed, filed, stamped, indexed, catalogued and processed into a great big fucking data warehouse that will store all your telecommunications and data scrapings forever and ever. Every heartbeat, every breathe.
Why is this happening? Three entire generations of wealthy citizens were indoctrinated into Rosicrucianism and have been sacrificing everyone and everything they should value most. Their children will be slaughtered ruthlessly by their sheepskin cloaked enemies. You can be sure that the only way you'll be allowed to live is if you're the best lay in the herd, or possess some other special talent. And only as long as they choose.
It was cold and wet last night so I let some raccoons in. This is what they told me. Later I had to throw them out after they got into the trash. They can't help themselves.
who ate too much brownies?
you?
the raccoons?
both?
;-)
Don't touch my brownies. There will be no mercy.
Jenny called. Making pot butter brownies on sat morning. maybe more rain :o)
life is still good
I bought some labels today with fiat. Last time I checked those are debt notes. Debt is essential to this shady system in which we're all a small little portion. I came up rough: the poor side of me wants it to end, but the wealthy side needs it to continue forever. I'm not saying I'm right, I'm just saying this is how my contemporaries think.
The Govt has gone way past the point of redemption and they know a default is certain. Why would they not continue writing debt? It is money that our enemies (Creditor nations) will be loosing after the default. Borrow as much as you can and buy things Generators, fuel, cars, off road vehicles, etc. on credit and it will be yours free and clear after the default.
Gross is out because anyone who wants to liquidate wil be liquidated, one way or another.
What would Bernie Madoff do in this crisis?
/sarc
It's utmost scary that few unelected academics at the Fed have power to print trillions
Yeah, which is why people should not focus on banksters...just yet. FedGov is the monster that needs to be slain...get that fixed first. Then the enablers...the banksters.
The people who took out Pablo Escobar tackled things in a different order. Fascinating story by Mark Bowden.
It kind of turns me on.
Three (or pick your number) blind mice comes to mind.
very nice. also apropos
You can substitute for Mary the Fed and the other Central banks. Or 2 ozen of the Dow stocks and all the other stocks in the known universe.
Interesting analogy. I wonder what you can substitute for the lamb? ; )
Anythink that goes good with mint jelly. No?
http://en.wikipedia.org/wiki/Interlocking_directorate
i like the last paragraph, modern interlock... the second to last sentence.
anyone read crossing the rubicon? is it that hard to believe that the entire banking system is run by the intel world?
all these 2big2fillet banks laundering drug money.
the article asks "how did this happen" ??!!?!?!?!
and what about BCCI in the early 1990's??!!??!!?!?!?!?!?!?!?!
me thinks we've found the answer.
Its all coming to an end. Time to write the Q99X2 Inconel tablets and get them into the ocean before somebody tries to rewrite history again.
I'm a little disappointed that Bill couldn't work Humpty Dumpty into his essay.
https://www.youtube.com/watch?v=0oKreL1jvkg
Below sums it up. The BOJ cliames to be buying JGB becuase they just cant get inflation (ever news staton reports this lack of inflation daily).. At the same time Abe is saying he will offer subsadies on oil and other products because prices have gone up too much from weak yen.
So they just cant say were buying bonds because the Govt messed up, borrowed too much money and now we need zero rates or below 1% from 0- 30ys..)
The reality also is the problem is not the new issuance even if issued at 0% or negaitve its the 10 trill already issued that they have to pay interest on plus the increasing defict from increasing pensions ect.. thats making it impossible to balance..
The owners of the old bonds wont sell because they want the high cpn to pay their pensions.. even if the price is good to sell so the Govt is in trouble because they cant pauy these old bond cpns..
So dont belive the hype the outstaonding debt committments.. weak yen will lead to Japan default.. with balooning pension requirments and less people working..
The rate doesnt matter any more.. 10 trill on a 5 trill (and shrinking eonomy) cant make it even if new issuance is monetized..
. they want to pretend theres another purpose.. ie prices are too high (inflation) and in same sentance.. we cant get prices to rise..
hello...
http://www.japantimes.co.jp/news/2014/12/04/business/economy-business/ab...
Bill Gross began his "Mea Culpa Ante" in April 2013......
As I said to him and his Brethren in July, The "Man in the Mirror" Bill Gross sees is Captain Smith......
He is not alone........
My Door remains Open Bill......
It might soon become apparent the economic efficiency of credit is beginning to collapse and the additional money poured into the system coupled with lower rates can no longer drive the economy forward. When this happens we are at the end game.
At some point the return on loaning money is simply not worth the risk! Why do you want to loan money if most likely you will never be repaid or repaid with something that is totally worthless? When this happens the only safe place to store wealth will be in "tangible assets" and the only lenders will be those who print the money that nobody wants.
The collapse of credit can pose major problems such as what we saw when many sellers were forced to demand payment up front before shipping goods in 2008. More on this subject below.
http://brucewilds.blogspot.com/2014/06/the-economic-efficiency-of-credit-can.html
So is Bill sayin' that there is a correlation between huge budget deficts, money printing, bans on smoking, and anti - discrimination against gays?