Why Bill Gross Is Wrong ... in the Short Term

Financial Sense submits:

By Chris Puplava

Bill Gross of Pimco made major news last month when it was learned that he - the world?s largest bond manager - was shorting U.S. debt in the company's flagship Total Return Fund. Of course, it?s not hard to understand why they'd be shorting U.S. Treasuries - one merely has to look at the government?s indebtedness and lack of political willpower to reach such an obvious investment conclusion. However, it is likely Gross will be early on his call as the possible exceptions he provides for why U.S. debt may rally appear to be gaining steam.

Leading Economic Indicators Signaling Growth Relapse

Reuters interviewed Gross last Friday and when asked what would change his mind in regard to government debt he said the following (emphasis added):

Treasury yields are currently yielding substantially less than historical averages when compared with inflation. Perhaps the only justification for a further

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