World’s Largest Bond Fund Say “No More” to US Govt Debt

Basta, nada mas, enough already! According to the Daily Caller, Investment Management Company also known as Pimco, the world’s largest bond fund dropped all government related debt from their Total Return Fund last month. WHY?

It’s pretty simple, yields will be too low and they blame the Federal Reserves practice of printing money thereby making our currency worth less (soon to be worthless?). The Federal Reserve likes to call this practice “qualitative easing” (QE2), but it’s the same -printing money to allow the Fed to purchase financial assets and government bonds that nobody else wants.

This is yet another indication that we need to get the deficit and government spending under control –now! Oh, and another thing- it would be a good idea to severe the incestuous relationship between the FED and Goldman Sachs.

Aloha, Mikie

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