Bloomberg is the gold standard in agnotology.
Here they’ve called Gross in on the carpet for the ‘shorting treasury’ actions of Pimco.
Gross: “Pimco is not shorting U.S. Treasuries. It is shorting ‘swaps’…or treasury-related securities”. Ya, ok.
Bloomberg Text Messages
‘Hedge funds reducing silver bets’
‘Gold coin sales at one year high’
Gross: “Greece is insolvent.”
Question: “End of QE at end of June. The Fed has been purchasing 70-75% of Treasuries, so who will buy them and at what yield?”
Ready for this answer?
“Going forward, language will dominate policy. Investors will take comfort in language that suggests extended, extended period of time.”
[as opposed to actual treasury purchases]
Gross practically chokes on this answer.
Translation: Don’t worry about the Fed ceasing 70% support of Treasuries. The system can be TALKED up. Right. And in the mean time, Pimco has headed for the exits.