Zero Hedge has a copy of the latest newsletter from PIMCO’s CEO Bill Gross to his customers. The topic is the quasi-certainty of the U.S. Government continuing its deficit for decades. His tone is very unusual – especially for this member of Generation X – in that he talks about the ethical obligation to future generations in this piece called “Off with our heads!”
- American politicians and citizens alike have no clear vision of the costs of a seemingly perpetual trillion-dollar annual deficit.
- Policy stimulus is focused on maintaining current consumption as opposed to making the United States more competitive in the global marketplace.
- Dollar depreciation will sap the purchasing power of U.S. consumers, as well as the global valuation of dollar denominated assets.