9.02.2015

Bill Gross: the Fed is destroying the economy

Gross:
The Fed is beginning to recognize that 6 years of zero bound interest rates have negative influences on the real economy – it destroys historical business models essential to capitalism such as pension funds, insurance companies, and the willingness to save money itself. If savings wither then so too does its Siamese Twin – investment – and with it, long term productivity – the decline of which we have seen not just in the U.S. but worldwide.

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Milestones

I talk a lot about inflation. But today was the first time in my life I actually used a dollar bill as toilet paper.