Bond guru says Fed actions will cause the dollar to drop 20%. Is it time to buy gold?

Bill Gross, the brains behind the incredible growth of Pimco and manager of the world’s largest mutual fund, and he thinks the Fed is going to cause the dollar to collapse by another 20%.

bill-gross

You’ve probably seen financial guru Bill Gross on CNBC. He’s been called the Warren Buffett of bonds, he’s the brains behind the incredible growth of Pimco and manager of the world’s largest mutual fund, and he thinks the Federal Reserve’s quantitative easing is going to cause the dollar to collapse by another 20%.

bill-gross
Bill Gross, the Warren Buffet of bonds, sees trouble for the dollar

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.

“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.

So how do you take Gross’ theory and make money from it? Is it time to buy gold? Is it time to move your money to a country with a commodities-based economy? Or is it time to mortgage the house and let Gross manage your money?

These are questions, not recommendations. What are you doing to protect your financial future? Let’s get a little discussion going here.

Disclosure: Mrs. Editor is a former employee of Pimco. Had she stayed with the company we would now be gazillionaires. Instead, she decided to teach autistic children and make minimum wage.

Damn her and her big heart. Damn her to hell.

Source: CNBC

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