- Let me assure you that the Illuminist FedRes will QE to infinity, like they are afraid it is going out of fashion! Got physical gold yet?
Bill Gross: Central Banks ‘Printing Money Like Gangbusters’!
By: Margo D. Beller , http://www.cnbc.com/
The world’s central banks are “printing money like gangbusters,” which could revive the threat of inflation, Pimco founder Bill Gross told CNBC Wednesday.
By putting “hundreds of billions” in currency in circulation, the central banks “can produce reflation—that’s why we’re seeing the pop in oil, gold” and other commodities, he said in a live interview. At the same time, “there’s the potential for deflation if the private credit markets can’t produce some sort of confidence and solvency going forward,” Gross said. “So we’re at great risk here, not only in the U.S. but on a global basis.”
Gross has previously predicted a “paranormal” market in 2012 characterized by “credit and zero-bound interest rate risk” and fewer incentives for lenders to extend credit. He said stock and bond investors must lower their expectations when it comes to returns, with 2 percent to 5 percent as good as they get this year.
He also told CNBC he expects the Federal Reserve will keep interest rates “exactly where it is at 25 basis points for the next three to four years.”