Bill Gross, head of the world’s largest bond company, PIMCO, has caused some consternation amongst the market fiends with his article, entitled “Credit Supernova!“, published in the February issue of PIMCO’s newsletter, illustrated, for the cosmically challenged, with a great color picture of an exploding supernova.
Even this raving monetarist can see endgame is at hand. Gross describes the current monetary system as Hyman Minskyian “Ponzi finance” gone wild. His physics and economic reasoning are wacko, but he does get that at “$56 trillion and counting,” the hyperbolic rise in U.S. credit creation since 1971 has created “a monster that requires perpetually increasing amounts of fuel, a supernova star that expands and expands, yet, in the process, begins to consume itself.”
Therefore, money is running out of time, he warns. When? After all that, he writes that “the end of the global monetary system is not nigh,” as he offers PIMCO’s services to help “transition from financial to real assets.”