April, 2011
This house is upside down.
What better description of our debt?
Under normal circumstances we're not wildly supportive of PIMCO's Bill Gross, however we enthusiastically echo his belief that Congress must dramatically reduce entitlement spending.
Gross recently opined that unless spending is cut, (and we believe he truly means cuts, not smaller increases) the U.S. will default on its debt; not in conventional ways, but by picking the pockets of savers via a combination of less observable yet historically verifiable policies: inflation, currency devaluation, and low to negative real interest rates.
The noted bond investor announced his fund is selling Treasury bonds because they have little value. While that may be an extreme measure, it is no exaggeration to hang the moniker "four-letter word" on the unsustainable debt, and the extraordinary spending that created it.
What better description of our debt?
Under normal circumstances we're not wildly supportive of PIMCO's Bill Gross, however we enthusiastically echo his belief that Congress must dramatically reduce entitlement spending.
Gross recently opined that unless spending is cut, (and we believe he truly means cuts, not smaller increases) the U.S. will default on its debt; not in conventional ways, but by picking the pockets of savers via a combination of less observable yet historically verifiable policies: inflation, currency devaluation, and low to negative real interest rates.
The noted bond investor announced his fund is selling Treasury bonds because they have little value. While that may be an extreme measure, it is no exaggeration to hang the moniker "four-letter word" on the unsustainable debt, and the extraordinary spending that created it.
Shamrock Equity Advisors, Inc.
Houston, TX
Houston, TX
What We Believe
