Wednesday, October 3, 2012

Gross: A Continuation of U.S. “Fiscal Gap” Suggests Shorting Bonds & Owning Gold Could Produce Major Returns – Here’s Why

"Bill Gross isn’t optimistic about the prospects for the U.S. dollar or U.S. Treasury bonds…Citing annual reports from the International Monetary Fund, the Congressional Budget Office and the Bank of International Settlements, Gross notes that the U.S. is one of the worst debt ‘offenders’ in the world [- within the "Ring of Fire" with the likes of Japan, the U.K., Greece, Spain and France - and, as such, unless] a combination of spending cuts and taxes of $1.6 trillion per year [are undertaken within the next 5 years,] America’s debt/GDP ratio will continue to rise, the Fed will print money to pay for the deficiency, inflation will follow, the dollar will inevitably decline, bonds will be burned to a crisp, and only gold and real assets will thrive..."

at http://www.munknee.com/2012/10/gross-a-continuation-of-u-s-fiscal-gap-suggests-shorting-bonds-owning-gold-could-produce-major-returns-heres-why/

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