Bill Gross: Central bank ‘financial methadone’ isn’t going to end well.
Central banks are stuck in a permanent cycle of low interest rates and money printing. This is a “financial methadone.” That according to bond guru Bill Gross who said this will eventually blow up.
Gross again railed against policies from the Federal Reserve and its counterparts around the world. They have inflated asset prices but have done little to boost economic growth.
He likened the easy-money efforts to “financial methadone.” Furthermore, the Fed’s withdrawal of stimulus has been met with increased efforts from the European Central Bank, the Bank of Japan and elsewhere.
“Quantitative easing will continue even though the dose may be reduced in future years.” However, “a methadone habit is far better than a heroin fix. Neverthelss, it has created and will continue to create an unhealthy capitalistic equilibrium that one day must be reckoned with.”