Bill Gross Previews The Financial Apocalypse: “The Classical Economic Model Has Reached A Dead End”
by Tyler Durden
ZeroHedge.com
03/03/2016
Bill Gross takes a turn for the downright apocalyptic (with a +/- 5 billion year error margin) in his latest letter speculating on the future of banking and finance under NIRP in a world where the “credit based economic system appears to be in the process of devolving from a production oriented model to one which recycles finance for the benefit of financiers”; a world in which “the negative interest rates dominating 40% of the Euroland bond market and now migrating to Japan like a Zika like contagion, are an enigma to almost all global investors”; a world where our “finance based economic system which like the Sun has provided life and productive growth for a long, long time – is running out of fuel and that its remaining time span is something less than 5 billion years.”
His bottom line? The same as ours for the past 7 years: “central bankers seem ever intent on going lower, ignorant in my view of the harm being done to a classical economic model that has driven prosperity – until it reached a negative interest rate dead end and could drive no more.”
The next step: admission of failure and paradropping money, leading to soaring inflation.
Or perhaps Gross is wrong and banks will be able to sweep all the world’s problems under the money printing/NIRP/helicopter money rug for another 5 billion years?
The Rest…HERE
