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To: Mariner
"So, you think Gross is preparing for a bout of deflation?"

Yes, and one so serious that he doesn't think he can sell bonds at any price...because there won't be any "money" left to buy them when things pop.

So...you don't think there will be a QE-3 or believe the talk about coming high inflation or hyperinflation?

133 posted on 03/09/2011 8:17:10 PM PST by blam
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To: blam
"So...you don't think there will be a QE-3 or believe the talk about coming high inflation or hyperinflation? "

Yes, I think there'll be a QEIII...or an attempt. But there are counter pressures to that as well.

Is the Fed will to buy the entire issue instead of just 1/2? I don't think they are. I think they know that would be criminal malfeasance even on their jaded terms.

The other potential, maybe more likely, is that the US Congress will soon prevent the ISSUANCE of that much debt...cut 'em down several 10% notches every time they talk.

The Fed has been buying everything in sight, by the ton. Those days are coming to an end.

Then, POP! Debt Deflation.

135 posted on 03/09/2011 8:25:36 PM PST by Mariner (USS Tarawa, VQ3, USS Benjamin Stoddert, NAVCAMS WestPac, 7th Fleet, Navcommsta Puget Sound)
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