Bill Gross on Central Banks including US Fed

"There comes a point when no matter how much blood is being pumped through the system as it is now, with zero-based policy rates and global quantitative easing programs, that the blood itself may become anemic, oxygen-starved, or even leukemic, with white blood cells destroying more productive red cell counterparts" --Bill Gross of PIMCO

Bill Gross: Hey Fed, your stimulus isn't working: " . . . . And to Fed chief Ben Bernanke's claims that once economic growth has been restored to normal levels, financial markets can also return to normal interest rates and returns, Gross has a few stern words: "Well it's been five years Mr. Chairman and the real economy has not once over a 12-month period of time grown faster than 2.5%," he disputes. "Perhaps, in addition to a fiscally confused Washington, it's your policies that may be now part of the problem rather than the solution.". . ."

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Most of the World is Printing Money Now

US, Japan Now Global Allies in Money Printing: ""'Don't fight the Fed' and 'don't fight the central banks' are sayings for a reason," Yoshikami said. "The money we're spending right now for central banks is going to come out of the economy five and 10 years from now. It might be a sobering result that we get less growth then because we're spending it today." There are additional risks, the most glaring being that a big round of quantitative easing in Japan may be no better at stoking growth and the good kind of inflation there than it has been in the U.S. Despite the Fed's all-out efforts, unemployment remains elevated and inflation subdued, though stocks have soared. Investors, however, have shown little interest lately in pondering long-term ramifications when there's money to be made today. "Monetary policy is being used as the policy tool to create demand. The question is, is this going to end in tears?" Prudential's Krosby said. "Is this going to end in worse calamity for the markets than what we had in 2008 and 2009? No one knows . . .""

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