Tuesday, November 2, 2010

20% Decline On Dollar Coming?

The dollar is in danger of losing 20 percent of its value over the next few years if the Federal Reserve continues unconventional monetary easing, Bill Gross, the manager of the world's largest mutual fund, said on Monday.
Source: pimco.com
"Other countries and citizens are willing to work for less and willing to work harder—and we forgot the magic formula somewhere along the way," Gross said.

"I think a 20 percent decline in the dollar is possible," Gross said, adding the pace of the currency's decline was also an important consideration for investors.
"When a central bank prints trillions of dollars of checks, which is not necessarily what (a second round of quantitative easing) will do in terms of the amount, but if it gets into that territory—that is a debasement of the dollar in terms of the supply of dollars on a global basis," Gross told Reuters in an interview at his PIMCO headquarters.
The Fed will probably begin a new round of monetary easing this week by announcing a plan to buy at least $500 billion of long-term securities, what investors and traders refer to as QE II, according to a Reuters poll of primary dealers.


  1. Americans have been working more and earning less for over twenty years now, Mr. Gross. Take your bonus and get out of our lives.

  2. The dollar is already worthless so how can you lose 20% of nothing.

  3. Gold is at $1352 so 20% increase would be $1622
    and Jim Sinclair is saying $1650 so this look about right however it might be more than 20% decline.

  4. They kicked around the phrase "World Class Workers" and this is what they really were after. The wages of middle class have trickled up and have been sucked up by the the Wall Street elite and corporate powers. The middle class is gradually being wiped out and their futures stolen.

    The majority of the middle class are now servants in a service economy. They are mere wage slaves who have their wages stolen by the multible levels of government. If you add to that a tax system that has shifted the burden of taxation on to the middle class with the various hidden taxes and an unfair income tax system that favors the rich you can see that the game will soon end. How much can you take from the serfs before they begin to react?

  5. In regards to the foreclosure numbers, I suspect defeated members of the Congress and Senate, will be in for a taste of not being able to make their mortgage payment due to their impending "unemployment status." Perhaps then they will understand the pain that has been inflicted on millions of Americans. Maybe they can find a factory job in China and send the money back home. Oh, but wait, that wont help because money wont be worth anything! Welcome to our world politicians!

  6. Several years before the $$$$$$$ hits 20% decline, heh?

    More like several months.

    Gross is a shill doofus with way too much entrusted to his ilk.

  7. I agree 2:20. The 20% decline is way short and the time is off. The dollar is already absent of value. The amount of debt alone is proof. Why is it still here? It's because reality hasn't caught up with people. The illusion is unfolding now and the dollar will lose 100% of its "value"... not 20%.

  8. I think the world is beyond funds-manager type "expert" opinions now. The writing is and has been on the wall for around 2 years now.
    The USA is the economic equivalent of The Titanic.
    It's going down period. Changing the captain will change nothing. Continuing to lie to the people achieves nothing and they're awake to the reality now anyway.
    The smart ones went for the lifeboats a year ago, the deniers didn't.
    The law of nature that says only the strongest (and best informed in this case) will survive is about to be played out across the world.
    Welcome to Global Depression 2010.

  9. 20% over - a few years?- comeon everyone knows it'll be more then that. My guess 40's-50's or more in stuff that matters, food, fuel etc.(lol-oh yeah taxes utilities and fee's too) cheap used things, furniture tv's others as lots moving in together and selling nearly new household excesses.

  10. dollar may lose 20% of its value in several years" its just contracditing BS when this whole year you have written how by the end of this year the whole u.s economy goes down the toilette???!!!!

  11. If it stops at losing 20%, we can be very, very thankful.
    In the meantime, I accumulate.

  12. Probably best to spend excess money on canned food and other supplies.


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