Commentary on Political Economy

Wednesday 31 August 2011

Bill Gross And World War Three

Finally Bill Gross has given up his loss-making bet against US treasuries and come up with good insights about the state of the capitalist world. Both these topics are matters over which we advised Gross in the recent past (just look through this site) and he did not listen. Now he has (wise man). But he is still wrong on one thing: on the US dollar. Here is his piece:

Gross starts from the right analysis - but comes up with the wrong conclusions! (Because his analysis is incomplete, that's why.) He is entirely right on the fact that what we have called "The Fracture" is now becoming wider and threatens to drag us all into a global conflict. But that would only mean that the US dollar will become even more vital to capitalists than ever!!

Martin Wolf, Reinhart and Rogoff have called it "The Great Contraction".
OK friends! You read it here first! We are calling it:

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