Posted on 02/01/2012 6:12:40 AM PST by blam
BILL GROSS: 'We Are Witnessing The Death Of Abundance'
Joe Weisenthal
Febuary 1, 2012
In his latest monthly letter, PIMCO's Bill Gross has a long philosophical-sounding discussion about credit, delevering, and the difficult task facing Bernanke.
The money line is this paragraph at the end:
Where does credit go when it dies? It goes back to where it came from. It delevers, it slows and inhibits economic growth, and it turns economic theory upside down, ultimately challenging the wisdom of policymakers. We’ll all be making this up as we go along for what may seem like an eternity. A 30-50 year virtuous cycle of credit expansion which has produced outsize paranormal returns for financial assets – bonds, stocks, real estate and commodities alike – is now delevering because of excessive “risk” and the “price” of money at the zero-bound. We are witnessing the death of abundance and the borning of austerity, for what may be a long, long time.
(Excerpt) Read more at businessinsider.com ...
I expect Bernanke to print money until the cows come home. (Hyperinflation eventually)
This is foolish. Human civilization is poised to enter the greatest era of abundance ever.
That is what will make us all poor.
Communism will only be possible when they destroy the middle class.
For a while now (since at least 2008), the primary objective of Fed policy has been to keep the deficit “managable”. It is doing this by keeping interest rates near zero as to minimize interest payments on the deficit. There are a lot of consequences to this, including the hoarding of $$ by corporations and banks. In addition, it is a huge (stealth) tax on savers.
If the 10Y treasury every goes above 5%, its game over.
The cost to produce most manufactured goods is going down. But the cost of raw materials and food is going up. Fact is, the Human race is increasingly able to produce everything it needs with fewer and fewer people. The big question is: who will pay to keep all those redundant people happy?
Yeah, abundance of stupidity.
Eventually?? Have you noticed that that Our Dollar has been DEVALUED by some 3500 Percent over the last 40 years. It Only took 1 Paper Federal Reserve Note to Purchase 1 Dollar in Legal Tender in 1971 when Nixon Officially closed the Gold Window after the UK called in their loans. Today it takes 35 paper federal reserve notes to purchase 1 dollar in Legal Tender. Seems to me that HyperInflation has been in full swing for quite a long time, I think what you really mean is an OUTRIGHT THEFT and DESTRUCTION of All Americans Assets on a Grand Scale.
The Fedzilla money bomb is like a nuclear bomb; you need a good develivery system to go with it. There is no good delivery system to get massive amounts of money "downstream".
That is a key question and it makes me really sad.
If a person is redundant and provides no economic benefit to society, what it to be done? One option is to kill them. The Left stands ready to exercise that option -- Death Panels are one manifestation of the idea. Another option is to put more people on welfare -- send 'em a check. The Left is also happy to exercise this option.
On the side of freedom ... what do we propose to do with redundant people who provide no economic benefit to society?
I swear, our side has no answer to that at all. I hate the answers that the Left would offer, but I don't see any alternatives except "Uhhhhhhh, the free market will think of something". I love the free market -- but "hope" is not a plan nor a policy.
I agree. I think we are seeing the(hopefully temporary) suppression of wealth creation, and therefore, abundance.
By you know who.
Inflation has been the ONLY PLAN SINCE AUGUST 15 1971, was my point. Nothing has changed with the exception of the MoneyChangers doubling down on TYRANNY.
“...the borning of austerity...”????
***
Does he mean “birth”?
In any event, I guess we all define abundance differently. A warm place to live, food, freedom to worship and speak (and don’t forget “free” health care). At least here in America it is pretty hard to make the argument that abundance is waning— SUPER abundance, maybe.
Yup.
Midnight basketball didn't work out so well, eh?
The end of abundance is Temptation. Temptation to steal, tax or take away anyone's abundance.
ONLY IF the politicians get out of the way and stop buying votes with our money. The parasites / takers are at nearly 50% and don't produce anything. The greens, AGW kooks, and EPA all want us to return to the stone age and will do prevent any development at all anywhere. These are abetted by a communist in the White House.
Credit crunch aside, these problems add up to limited supply of many things. But the apparatchiks and nomenklatura will, of course, have all they need and want.
Yes; depression. For at least another 6 years.
Before all of this Nixonian Free Trade insanity, the lower IQ types worked manufacturing. Now they are a permanent drain on the nation. Look at them as overhead, a cost of doing business on the gloBULList open border, free trade welfare state.
Absolutely.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.