Despite the imminent end of QE2 -- and the fact that Bernanke has made it fairly clear that QE3 is not imminent -- Treasuries keep grinding higher, moving against bond god Bill Gross, who has said they're due to tank.
Nonetheless, he's been vocal about his belief bondholders will get screwed in various ways, and that inflation is on the march.
Now he's even getting conspiratorial.
Here's the latest tweet from PIMCO (which is actually probably one of the best corporate twitter feeds).
Catch that about the silver?
Back in May, when silver was literally going parabolic, the CME hiked margins on speculators. Conspiracy theorists thought this was a deliberate attempt to keep the price down, though the CME (and others) noted that the exchange has established formulas for hiking margins when volatility spikes.
We're not interested in joining that debate right now, though we'll just note that Bill Gross (or at least PIMCO) has thrown his lot in with the conspiracy crowd.
I do find it interesting the angle Bill Gross seems to be playing. Initially, I found a lot of credibility in his move to clear his fund's position of U.S. Treasuries because of the Fed's stance of artificially keeping the interest rates low. I wonder, though, as the market goes through its gyrations whether some of his comments are more attributable to his sense of wanting to look right. Sometimes when a person is overly concerned about being right or has to strongly defend their position as being right..... it gives a person pause to consider if the ego or TA is leading his statements. The challenge for any of us in normalcy bias and, in some cases, applies even more so to someone with Bill Gross's position and responsibilities. Personally, I think he is right and that bonds in the short to mid term aren't going to protect an investment against the devaluation of the FRN. I just wish he'd stick to his bountiful experience to maintain his call and realize that he has no need to defend himself in the moment. He doesn't need to present or allude to conspiracy theories, in my opinion.... just stick to his TA track record, which is more than sufficient for his investors to maintain confidence.
Wow, that is pretty strong point on our side. Bill Gross is hardly just some guy from the internet, nor is he talking his book, since he doesn't sell silver products.
Thanks for posting this Sterling. This is the kind of cutting edge stuff I could only find at Zerohedge. And it's not there this evening. Straight up Hat Tip to you Sterling all the others posting cutting edge material like this. I think Turd is getting himself quite an informed group here that is bringing an edge to his forum and creating value here. Love it!!