Another Round Of Quantitative Easing Coming Up

Quote:

Bill Gross: Fed Should ‘Drop The Money From Helicopters' The next big monetary and fiscal policy move should include an airdrop of "money from helicopters" to stimulate the U.S. economy and avoid an extended recession, says Bill Gross, a portfolio manager at Janus Capital Group. Gross may not be entirely serious about "helicopter money," but in his latest Investment Outlook note published Wednesday, he said the Federal Reserve and U.S. Treasury should engage in another round of quantitative easing (QE), printing trillions of dollars to buy government bonds and thereby boost the economy. "Drop the money from helicopters," wrote Gross, manager of the $1.3 billion Janus Global Unconstrained Bond fund. "There is a rude end to flying helicopters, but the alternative is an immediate visit to austerity rehab and an extended recession. I suspect politicians and central bankers will choose to fly, instead of die." (Stuff in the middle snipped out.) Gross said interest rates will stay low for longer, asset prices will continue to be artificially high, and at some point monetary policy will create inflation and markets will be at risk. He also said investors should be content with low single-digit returns.

At this point death is the preferred option.