PIMCO founder Bill Gross — one of the world’s largest mutual funds managers, who focuses mostly on bonds —
Earlier today and yesterday....
“No Way Out” of Debt Trap, Gross Says: U.S. Living Standards Doomed to Fall
“There is really no way out of this trap and this conundrum at this point,” says Gross. From an investment perspective his advice is to stay clear of “bonds in dollar denominated terms” and to be “wary of higher interest rates going forward.” http://www.freerepublic.com/focus/f-news/2685988/posts
“U.S. Living Standards Doomed to Fall”
Where’s Captain Obvious? Gross is simply stating what we have been seeing around us for a few years now. We didn’t need higher gas prices to tell us that name-brand foods are a thing of the past; people have been buying budget-brand groceries for years now at Wal-Mart (who have been kind enough to put in a frozen section by me). Wal-Mart will displace grocery stores as Americans flock to the “company store” to spend their inflated dollars on everything from food to cheap Chinese clothing to cheap Chinese tools to cheap Chinese toys. Our standard of living has been falling for over a decade, but it was masked by purchasing necessities with credit cards. The only difference now is the “company store” isn’t giving advances against future earnings that are looking more uncertain by the week...