Nothing to worry about. Just the potential for crushing deflation and the halt of all U.S. commerce.
So we'll have deflation instead of inflation now? Gosh, that's swell. Ain't life a gas?
“Nothing to worry about. Just the potential for crushing deflation and the halt of all U.S. commerce.”
Care to give us your argument that no QE3 will cause deflation?
The absence of a QE3 will not reverse the previous debt monetization, which will continue to spur inflation for awhile. All this absurd borowing the federal government is doing will eventually lead to much higher inflation and interest rates; and the longer the fed delays that effect, the greater the effect will be.
The piper must eventually be paid. Obama knows that. I believe he wants (1) to delay the misery until after his re-election, and (2) then to have the misery destroy what is left of America’s free enterprize. His idea is to respond to the public’s plea for help with a totalitarian, Marxist state that will enforce “from each according to his ability, to each according to his needs.”
Your kids and grandkids are up the creek.
If Gross thought that, he'd have done the opposite of what he did. He'd be running toward Treasurys instead of away from them, Treasurys and cash.
But he wants just cash instead. Going short-term + cash and dumping Treasury debt means %'s are headed up, Treasurys and equities down, like the article says.
Gross's move if correct also implies, dollar up, foreign currencies and precious metals down.