Bill Gross Says Capitalism Can’t Survive at 0%

Many people think the time has come for the Federal Reserve to wean the U.S. economy off easy money.

They point to improvements in the jobs market, the bull market in stocks and auto sales that have rocketed higher.

But Bill Gross, the dethroned “king” of the bond markets, is taking it a step further. He argues the very existence of capitalism is threatened by the Fed’s extremely low interest rates.

“Zero percent interest rates is destructive to the real economy because capitalism can’t survive at zero percent. It wasn’t meant to be that way,” Gross, a prominent bond fund manager at Janus Capital, told Bloomberg Radio on Monday.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza