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

by editor on November 3, 2010

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

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Special Ed Teacher

Hey, we don’t make minimum wage! (Tho’ we do have to ride the short bus.)


ED, I guess if there’s a silver lining, then with Mrs Ed, NOT making the Gazillions of bux, then there’s 20% pf Gazzilion that you won’t loose??
Folks this is super serious. The is George Soros behind all this. He tried to manipulate our elections. (I hear you: “Oh, another crackpot right winger”. Not so fast. ) Soros wants a new world order, and currency. The way ha made all his money, was through the devaluation of FOUR countries’ money. Now he’s after us. Obomie has his nose up Soros’ ass. He also wants a Single currency, and SINGLE WORLD GOVERNMENT. This is lowest common denominator thinking. We MUST avoid doing this.Ed and Admin, my personal thanks for putting this up here for us to see. We MUST get this word out. The must stop.
F–king Obomie. F–king Soros.


Some critics of this site may ask if Mrs. Editor’s work with autistic children is a parallel for her life as Mrs. Editor. . . . . 🙂

Clearly though, MR. Editor is brilliant; why else would he be involved in this fantastic website?

Keep up the good work, both of you!


[…] Bill Gross: “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..I think a 20 percent decline in the dollar is possible.” […]


Something smells here. The time to buy gold was 10 years ago. Since Mr. Gross’s commissions are the inverse of yield..and that has nowhere to go…is he trying to get us rubes all on one side?

Don’t get me wrong, buying gold will always be a good idea as long as our ponzi financial system is intact but if guys like him are trying to tell the retail investor to jump in then its likely the wrong time.


Pimco does not sell gold, and the gold comment was from us, not him.

I own several Pimco funds, and the talent at Pimco is superb.


crap, misread that one. i thought i heard pimco was looking to diversify into equities and commodities a while back.


Kudos to the Mrs. for her switch, as I know a couple of people with autistic children. To have someone dedicated to a job for the love of it and not for the love of the money attached to it, is a blessing to all.
I have a friend who, when MicroBucks moved from Albuquerque to Seattle back in 1979, was employee number something-in-the-teens. She quit before they went public, so had she stayed, she’d really have the big $$$ with all the stock options they gave out willy nilly. She’s kicked herself ever since. Luckily, I’ve never been in that situation to kick myself (or DH!) LOL!

Bat doo-doo

My hat is off to Mrs Editor, that’s a fine choice indeed.

A lower US$ will certainly help exporters but inflation, if it occurs, hits the poor and those on fixed incomes like pension & welfare the most. Hey aren’t the Democrats meant to be sticking up for the latter folk at the expense of big business? Obama’s world of inverted reality!


Props to Mrs. ihatethemedia. Our falling standard of living generates a need to be economically defensive in a way known previously in the 1930s. Her selflesness may play out as a relic of our wealthy past.

OTOH, gold and silver may be the only defense. On it’s face, real estate is a good defense against inflation, but in California, you’re a sitting duck for The New Taxation that’s headed your way. This will actually cause a fall or stagnation in housing prices.

I think I’ll be playing the Lottery this week….


I applaud Mrs. Editor for teaching autistic children! Being a gazilloniaire would certainly be on my list of things that would make me VERY happy, but there really are some things that bring more personal satisfaction and happiness than cold hard cash. Knowing you make a significant difference in so many lives is certainly one of those things.


Praise Jesus that someone was un-selfish enough to help those children, she and her blessings of a fulfilled life will be more than those guzilions which would be taken away from her, or have the fear of radical government theft, or someone killing her for it . Bet those children are praising her too.

We are not done here with this big Republican win – we need to make SURE those elected know it might be a ONE term for them, if they go the way of corruption. I think it is OUR win of the middle. REMEMBER FOR TWO MORE YEARS!!

ALSO, we need to watch how Obama plays this out – there is a communist way where the commie backs off, to wait for another time.
Sorry, he is an anti-colonialist.