-----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of Dewayne Hendricks Sent: Wednesday, February 06, 2013 1:33 PM To: Multiple recipients of Dewayne-Net Subject: [Dewayne-Net] Infinite expansion in a finite universe - what could possibly go wrong?
[Note: This item comes from reader Randall. DLH] From: Randall Head <[email protected]> Subject: Infinite expansion in a finite universe - what could possibly go worgn? Date: February 6, 2013 11:45:56 AM PST To: [email protected], [email protected] PIMCO'S Gross sees U.S. economy on road to extinction By Herbert Lash and Sam Forgione Thu Jan 31, 2013 <http://www.reuters.com/article/2013/01/31/us-pimco-gross-outlook-idUSBRE90U 0VD20130131> (Reuters) - Bill Gross, the PIMCO bond guru, said on Thursday a heavy reliance on credit has put the U.S. economy on a trajectory toward extinction, and he warned of an investor exodus from financial markets. The level of credit needed to spur economic growth has grown five-fold since the 1980s, said Gross, who is a founder and co-chief investment officer of Pacific Investment Management Co. He likened the need for more and more government stimulus to produce ever-diminishing rates of growth to Japan's experience over the past decade. Using a supernova as a metaphor for the U.S. financial system, Gross said the universe is expanding so rapidly now that in the far future it will end in a "big freeze." Dependence on credit for growth will produce similar results, he said. "Our current monetary system seems to require perpetual expansion to maintain its existence," Gross said in a PIMCO investment outlook commentary for February posted on the firm's website. "The advancing entropy in the physical universe may in fact portend a similar decline of 'energy' and 'heat' within the credit markets." Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, said a breakdown in credit markets will likely spur inflation, something he has warned against in previous letters. PIMCO, based in Newport Beach, California, had $2 trillion in assets as of December 31. He again recommended inflation-protected Treasuries, gold and other commodities, and recommended investing in countries with less debt such as Australia, Brazil, Mexico and Canada, and in world equities with healthy cash flows. [snip] Dewayne-Net RSS Feed: <http://www.warpspeed.com/wordpress> _______________________________________________ Futurework mailing list [email protected] https://lists.uwaterloo.ca/mailman/listinfo/futurework
