Pimco’s Bill Gross had some strong comments in his “Investment Outlook” this past week. He states that “check writing in the trillions is not a bondholders friend;it is in fact inflationary…” He even likened public debt to a Ponzi scheme.
Inflation is the enemy of the bondholder, and particularly for the owners of bonds with longer dated maturities.
One week ago I wrote that maybe a “do no harm” approach, i.e. no more Quantitative Easing, would be best for the economy. Bill Gross agrees in the long run it will be best for everyone.
