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Fed Easing May Mean 20% Dollar Drop: Bill Gross

Posted By admin On November 2, 2010 @ 5:00 am In Money Watch | Comments Disabled

Reuters
Nov 2, 2010

The dollar is in danger of losing 20 percent of its value over the next few years if the Federal Reserve continues unconventional monetary easing, Bill Gross, the manager of the world’s largest mutual fund, said on Monday.

“I think a 20 percent decline in the dollar is possible,” Gross said, adding the pace of the currency’s decline was also an important consideration for investors.

“When a central bank prints trillions of dollars of checks, which is not necessarily what (a second round of quantitative easing) will do in terms of the amount, but if it gets into that territory—that is a debasement of the dollar in terms of the supply of dollars on a global basis,” Gross told Reuters in an interview at his PIMCO headquarters.

The Fed will probably begin a new round of monetary easing this week [1] by announcing a plan to buy at least $500 billion of long-term securities, what investors and traders refer to as QE II, according to a Reuters poll of primary dealers.

Full article here [2]

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Fed Easing May Mean 20% Dollar Drop: Bill Gross 140910banner5 [4]


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URLs in this post:

[1] Fed will probably begin a new round of monetary easing this week: http://www.cnbc.com/id/39947742/

[2] Full article here: http://www.cnbc.com/id/39957072

[3] Having A Supply Of Healthy Foods That Last Just Makes Sense (AD): http://www.efoodsdirect.com//index.html?aid=14&adid=43

[4] Image: http://www.homegain.com/homevalues

[5] Euro Currency of Choice as Fed Easing Devalues Dollar: http://www.prisonplanet.com/euro-currency-of-choice-as-fed-easing-devalues-dollar.html

[6] Hussman: Bernanke’s Quantitative Easing Is About To Trigger A Collapse In The US Dollar: http://www.prisonplanet.com/hussman-bernankes-quantitative-easing-is-about-to-trigger-a-collapse-in-the-us-dollar.html

[7] Fed Easing Is Not Aimed at Weakening US Dollar: Dudley: http://www.prisonplanet.com/fed-easing-is-not-aimed-at-weakening-us-dollar-dudley.html

[8] Obama Says Federal Reserve’s Easing Wasn’t Aimed at Affecting Dollar Value: http://www.prisonplanet.com/obama-says-federal-reserves-easing-wasnt-aimed-at-affecting-dollar-value.html

[9] Gross Likes Dollar More Than Euro for 1st Time on EU: http://www.prisonplanet.com/gross-likes-dollar-more-than-euro-for-1st-time-on-eu.html

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