Don't fight central bank drones
Money printing lowers the value of all global currencies, with no one country winning. Investors should respond by selling the most serial offender or obsessive compulsive printer.
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Comments PolicyIf we sell all the obsessive compulsive printers' currencies, as Bill Gross would like us to do (Don't fight central bank drones), there is virtually not many currencies we can swap into. The offending currencies include : USD, Euro, Yen, Sterling - all the big liquid international currencies used for international trade and transactions.
It does not make much sense to swap into Swiss Franc, AUD, Canadian dollar, China Reminbi etc. they are not liquid enough or used in sufficient volume in international settlement.
The obsessive compulsive printers know this, that's why they do what they do - because know they can and there are no alternatives for investors to swap into.
They are a cartel and they work in a concerted way to devalue their debts by inflating them away or reducing its worth against other countries (read lenders') currencies.
Excellent article sums up the problem well but where is the last paragraph about what to do with all these piles of "slowest depreciating fiat"? (Don't fight central bank drones, February 28)
I would suppose one should buy real assets but then at what price if prices are already inflated? Does it matter? Perhaps Bill is also unsure... or was going to McDonalds his cryptic solution?