Bill Gross’s April commentary is out: http://www.pimco.com/Pages/Skunked.aspx
Bill’s gotten more and more shrill over time, which is surprising for someone in his position, and in this commentary he points out the obvious facts that most people either choose to ignore or are ignorant about – our debt and entitlements situation is precarious and we won’t be able to grow our way out of it. There really are no easy choices left but the longer we wait to take action, the more difficult the choices.
Unless entitlements are substantially reformed, I am confident that this country will default on its debt; not in conventional ways, but by picking the pocket of savers via a combination of less observable, yet historically verifiable policies – inflation, currency devaluation and low to negative real interest rates.
No comments:
Post a Comment