August 31, 2006
The Boomers Will Sell Their Assets to Whom and at What Price?
No Cuts, No Butts, No Coconuts, by Billionaire Gross
What does a government do that is too absorbed in the moment and fails to alert its citizens to the perils ahead? Cut in line, I suppose. It devalues its currency, it reflates/inflates its economy, and because that doesn’t create real wealth, it recites the mythology of a bygone era, of a “shining city on a hill” so that its citizens believe they’ve never had it so good.
Correct. Maintain US Dollar shorts and increase your allocation to international stocks.
Cat: | Time: 4:25 pm (utc+8)
August 31st, 2006 at 10:52 pm
Gross, aka “Dow 5000″ for his ridiculous prediction of what the DJI was going to be on the last day of 2005, reveals his true colors in this blurp. He’s obviously on the way out, and he doesn’t give a damn if he offends the conservatives who have placed money with his funds.
He’s become Jim Taggart, the “hero” of Atlas Shrugged. He’s is a ‘true believer’ in the hate-what-America-stands-for mass movement that currently has America by the throat. To quote Dr. Thomas Sowell on Eric Hoffer, “mass movements… are an outlet for people whose individual significance is meager in the eyes of the world and — more important – in their own eyes.”
It’s also a fact-free world if you’re a true believer. Reality is optional. So the facts about the efforts by the President to buttress Social Security by completely reforming it don’t count.
Someone should ask this looter Gross what he did to help Social Security when the President of the United States was so very diligently sounding the alarm and attempting to draw the nation into a debate about how to fix SS and the very problem to which Gross now refers (now that it’s very late to try to do anything about it), of young people needing to be relied on to fund the retirements of boomers.
While the President struggled to get traction Gross was on the sidelines– apparently hoping that the President would fail and probably doing something to help him fail (such as campaign contributions a la Soros)!
And what exactly is that crap about an “Asian invasion” (his words)? They are a problem?
August 31st, 2006 at 11:47 pm
Timing is everything, especially in the financial world. I think that Bill is probably correct in his Dow 5000 prediction, but loused up the timing.
even big papa warren shorted the dollar a little early last year.
when you look at fundemental economics like these gentlemen the outlook is rather grim. But the United States runs on political economics, perpetually stretching their credit thinner and thinner.
Mike: Hating what America is doing, is not the same as hating what America stands for. To stand by and let politicans divy up the country for themselves with no care as to what happens after their term, is in my view less patriotic than those who protest the actions of the masters.
Mass movements may atract people without independent direction, but some people are like that. And sometimes it takes numbers to get the message across.
(Not trying to prove you wrong, just offering an opinion.)
September 1st, 2006 at 2:46 am
Bill Gross has been wrong in many ways - DOW5000, constantly calling for rates rises halted and now cut. However, the FED has loudly hinted that we are in for a period of rising rates for a while yet. In very broad terms just because housing stalls, inflation doesn’t as shown by history.
September 1st, 2006 at 3:14 am
Bill Gross is way more on the mark than any of the establishment “economists”. He will be proven right ultimately. Money has no ideology and it doesn’t care if the so called Conservatives (just in name thesedays) are offended or not.
September 1st, 2006 at 3:21 am
Mike you are deluded. The real people destroying and hating America are the ones in the White House nowdays.
These so called Conservatives have no regard for the Constitution or sound money policies and are big government loving traitors quite simply put. I’m sorry to say that you’ve been ‘had’ by your own federal government.
September 1st, 2006 at 5:15 am
“Dow 5000″ was right on the number but missed the timing …he was just about exactly ten years too late.
What is “America?” What does “hating America” mean if you can’t define “America?”
Is it the land? What good does it do to hate dirt?
Is it the people residing on the land? Well, if you’re a person residing on the land and you “hate America,” do you hate yourself? Are you part of “America” if you hate it?
Is it the “government?” “A government is a body of people, usually, notably, ungoverned.” If “America” is defined as the “government” that “rules” the people residing on the land, then what’s wrong with hating “America?” Necessarily the vast majority of people IN “America” aren’t a PART OF “America” if “America” is the “government.”
If you can’t define “America,” how can you say someone is “destroying” it?
Does being an “American” imply unquestioning support of the decisions of the “government?” Does questioning the decisions of the “government” of “America” imply that you’re not an “American,” or worse, that you’re an “America hater?”
What DOES “America” “stand for?” Would any two “Americans” have perfect agreement on that?
PS – no one in “government” has any regard for the Constitution, anyways. And neither do I. I didn’t sign it!
PPS – Of course we’ve been had by our “government.” That’s what “governments” are FOR!
September 1st, 2006 at 12:41 pm
In the Gross statement that our Chairman quotes Gross refers, I presume, to the farewell address of President Ronald Regan:
I’ve spoken of the Shining City all my political life. …In my mind it was a tall, proud city built on rocks stronger than oceans, windswept, God-blessed, and teeming with people of all kinds living in harmony and peace; a city with free ports that hummed with commerce and creativity. And if there had to be city walls, the walls had doors and the doors were open to anyone with the will and the heart to get here. That’s how I saw it, and see it still.
Note that President Reagan referred not at all to “real wealth” of the only kind that is appreciated by the bond salesman ($$$$$). Most of what President Reagan said wasn’t even particularly about economics, except perhaps where he referred to “commerce and creativity”. Of course the original source of the “shining city” language was a sermon by a Reverend Winthrop who was echoing a passage from Matthew 5:14-16, and neither the sermon nor the biblical passage pertain to wealth of the material, Bill Gross, kind. (Mr. Gross had better bone up on the chances of a camel passing through the eye of a needle while he still has time.)
September 1st, 2006 at 7:57 pm
Bill Gross’s latest attacks economists like Kudlow - the supply siders, who deem that tax cuts give the incentive to generate private sector economic growth when consumers spend.
He is lamenting the liabilities the baby boomers will push on the next generation - regardless of money/accounting. Those liabilities have to be met - in money terms - boomers will be paying a steep price for the consumption they require from the lower number of workers at the bottom rung of the ladder without massive immigration, continued semi-working, and selling of assets.
As with most doom and gloom a lot of this is nonsense. Most of the liabilites are excessive promises, which will require changing as Buffett points out. The richest generation in the history of the world will have to sell some assets, but the US population is still growing, per person wealth is still increasing, as productivity through technology still carries on.
Massive immigration would see per person wealth drop in most of the population, old and young without assets who rely on labor, not assets for most of thier income.
The plan seems to be that because of the global forces of increased labor and outsourcing affecting professional jobs, that the FED can carry on pumping up the domestic economy with money, as there will be no wage-price spiral.
We have seen this with Japan in the 1960s to 1990s, their per person wealth, with lower skilled labour costs, increased to a level of similar technology as the US, which benifited both consumers unless you where in an industry which tried to compete with them head on.
However, the similar loose money policy of housing and stock boom and inflation in the 1970s left a huge recession in its wake, as eventually wages rose and productivity was affected. Let’s say Pimco is right and the leveling out process affords more rising profits without inflation as picked up by the CPI - so capital gets a better and better return, in near full employment conditions.
Why would rates be cut?
If the CPI understates real inflation, and its cutting into workers real incomes, in terms of bills and gas, then consumption will drop for non essentials. The economy will start to shrink from all this printing money.
Why then, would rates be cut just because workers are not receiveing higher incomes? Not matter how you stack it, it seems to me that higher rates are to follow.
September 2nd, 2006 at 6:36 am
NaughtyTrader: You talk crazy.
September 2nd, 2006 at 8:18 am
I’m not a US citizen nor have I ever visited the US nor am I particularly interested into partaking in a debate about US policy. But, I do have to say that Gross’s comments have amused me for sometime. I have often wondered what his motive for these comments are? Liquidity? Political? Business/Marketing? There is no way he could trade off those conclusions.
November 29th, 2006 at 11:40 am
[…] ETF to Watch — Euro Currency Trust (FXE) The Beginning of the End of the American Republic The Boomers Will Sell Their Assets to Whom and at What Price? A Haven for Biomedical Freedom Buffett Cuts Dollar Short Just As Slide Set to Resume Nothing Can Save the US Dollar Trading with the Trend: US Dollar Index The US Dollar Resumes Its Slide […]