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 ...
If I were your Creator I'd be miffed at the amount of pride, arrogance, and complacency in that declaration.
But I am looking at the difference in price between 1888 and 1961, then the difference between `1961 and 2012.
As for the denim, my mom (1970) used to say that Levis used to be made of a much heavier denim. Somewhere along the way they cheapened the product.
I had several pairs made in USA, Mexico, Guatemala, Honduras and Colombia.
Forecast nearly 100 years ago:
When all men are paid for existing and no man must pay for his sins,
As surely as Water will wet us, as surely as Fire will burn,
The Gods of the Copybook Headings with terror and slaughter return!
Alternate phrasing (courtesy of Dr. Walter Williams) is "In order for one person to get something without paying for it, another person must pay for something without getting it".
The phrase you're looking for is "1000% more", not "a thousand times more".
"1000% more" is "eleven times as much", which is approximately the increase from $2.60 to $35.00.
If they cost a thousand times more (than the original $2.60) they would cost $2600.
Which may very well happen before it's all over.
nonsense...”death of abundance” is code speech for “sit still while we try and shackle you peons and peasants”
The demographic imperative however, is overwhelming. That’s why progressives/liberals are pre-occupied with abortion, death and killing-its their only way to keep ahead of the demographic growth curve which in the end will overwhelm the status quo.
Overall, that statement may be correct.
For the masses of population in India and China, their “abundance”, relatively, will increase dramatically.
Here in America, however, we’re in for a massive downward class migration. That’s not only individual slipping down a class rung or two, that’s the classes themselves slipping down in level of lifestyle.
I love the poem Gods of the Copybook Headings.
Kipling was a prophet. He said (about Afghanistan) “Odds are on the cheaper man”.
My wife's relatives in India have already seen their 'abundance' increase dramatically, from nothing to something. However, inflation in the last year has taken away much of the gain.
WHEN the 10Y treasury goes above 5%, it’s game over!!”
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