So you're saying the Economist magazine picked the wrong guy?

.

On Sun, Mar 13, 2011 at 11:21 PM, Gruss Gott <[email protected]> wrote:

> Wow!  Brother!!  Obviously I couldn't agree with you more.  Just one slight
> point:
>
> Guess who buys 70% of our bonds right now?  YOU!  (or your kids).
>
> What the Federal Reserve does is say, "hey lookee that!  I've got $1T".  In
> other words, they just make it up.  Type some keys and blamo!  $1 trillion
> in their account ("quantitative easing" QE).  Then the Fed uses their new
> dough to go out and buy stuff.  In this case US bonds.
>
> This is why PIMCO's Bill Gross just sold his entire holding of US bonds; he
> knows that in June when QE2 ends the government will have to raise yields of
> new bonds to get someone to buy that 70% we need to keep our economy from
> collapsing.
>
> Of course, few will buy, so we'll see a QE3.  More monster debt for your
> kids.  And that will drop existing bond prices which is why Bill sold.
>
> What's it all mean?  Stagflation.  Rising interest rates, rising prices,
> stuck economy.  Just like the 70s!
>
> And we have zero choice.  Hopefully we the depression we were supposed to
> have and held off with all the debt won't trigger a

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