US Is Debt Addict on 'Budgetary Crystal Meth': Gross - News and Current Events | futures io social day trading
futures io futures trading


US Is Debt Addict on 'Budgetary Crystal Meth': Gross
Updated: Views / Replies:231 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

US Is Debt Addict on 'Budgetary Crystal Meth': Gross

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

US Is Debt Addict on 'Budgetary Crystal Meth': Gross

Stocks and bonds will be virtually worthless and gold and hard assets will be the only investments worth having unless the U.S. tames its addiction to debt and deficits, Pimco's Bill Gross said Tuesday.

In his widely followed monthly Pimco investor newsletter, the CEO of the company that runs the largest bond fund in the world paints a stark picture of the domestic financial picture.

He said the nation has lost the trust of financial entities including the Congressional Budget Office, International Monetary Fund and the Bank of International Settlements, each of which lately has published critiques of international finance.

"When all of them speak, we should listen and in the latest year theyíre all speaking in unison," Gross wrote. "What theyíre saying is that when it comes to debt and to the prospects for future debt, the U.S. is no 'clean dirty shirt,'" the latter reference a term Pimco has used to describe the nation's standing compared to other debt-plagued nations.

"The U.S., in fact, is a serial offender, an addict whose habit extends beyond weed or cocaine and who frequently pleasures itself with budgetary crystal meth. Uncle Samís habit, say these respected agencies, will be a hard (and dangerous) one to break."

Washington must close both the budget deficit, which entails spending and revenue during the course of a given year, as well as a "fiscal gap," which describes the amount that will be needed to pay for social programs such as Social Security, Medicare and Medicaid that have unfunded liabilities of tens of trillions of dollars, Gross said.

The CBO, BIS and IMF have concluded that the U.S. balance sheet "is in flames and that its fire department is apparently asleep at the station house," he added.

The current budget deficit is running at more than $1.2 trillion while the total national debt is more than $16 trillion and there is a fiscal gap of 11 percent of gross domestic product, which is currently $15.6 trillion.

Gross said Washington lawmakers need to find spending cuts and tax increases of $1.6 trillion a year to close to fiscal gap. Eliminating the so-called Bush tax cuts, enacted across the board during the George W. Bush administration and a favorite target of Democratic critics, would raise only $200 billion of that total, he said.

"Unless we begin to close this gap, then the inevitable result will be that our debt/GDP ratio will continue to rise, the Fed would print money to pay for the deficiency, inflation would follow and the dollar would inevitably decline," Gross wrote. "Bonds would be burned to a crisp and stocks would certainly be singed; only gold and real assets would thrive within the 'Ring of Fire,'" another Gross term for U.S. economic conditions.

Should that happen, the results both for investors and the U.S. economy would be catastrophic, he concluded.

"If the fiscal gap isnít closed even ever so gradually over the next few years, then rating services, dollar reserve holding nations and bond managers embarrassed into being reborn as vigilantes may together force a resolution that ends in tears," Gross said. "It would be a scenario for the storybooks, thatís for sure, but one which in this instance, investors would want to forget. The damage would likely be beyond repair."


US Is Debt Addict on 'Budgetary Crystal Meth': Gross - US Business News - CNBC

Reply With Quote

Reply



futures io > > > > US Is Debt Addict on 'Budgetary Crystal Meth': Gross

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Pimco's Gross to Investors: Stay Away From Europe Quick Summary News and Current Events 0 August 7th, 2012 04:20 AM
Pimco's Gross Apologizes For 'Just Having a Bad Year' Quick Summary News and Current Events 0 October 16th, 2011 08:10 PM
Bill Gross Declares That The Economy Is Doomed kbit News and Current Events 0 October 15th, 2011 11:36 PM
Crystal Cathedral megachurch files for bankruptcy Zoethecus News and Current Events 0 October 18th, 2010 10:57 PM
Crystal Ball hondo69 The Elite Circle 9 October 22nd, 2009 07:41 PM


All times are GMT -4. The time now is 04:43 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-15 in 0.08 seconds with 19 queries on phoenix via your IP 54.234.255.29