Bill Gross is angry

Bill Gross is certainly one of the greatest financier of all time and when he talks, you better listen. Well, on his last  " Investment outlook", Bill is castigating his own industry  by firmly pointing out that in that world, money is being used to " make money" rather than to create true value that might improve societal benefits.

Fifty years ago, the highest paid and most prestigious professions were that of a doctor or a 707 airline pilot who flew the “golden” route from Los Angeles to Honolulu. Today the yellow brick road begins on Wall Street or the City. Aside from supernova innovators such as Steve Jobs or Mark Zuckerberg, the money is made from securitizing things instead of booting and rebuilding America. The tallest buildings in almost every major city are banks, with tens of thousands of people shuffling and trading paper for a living. One of this country’s premier investment banks paid each of its 26,000 employees an average of $370,000 in 2010, nearly ten times the take-home pay of other American workers. Almost a quarter of the 400 wealthiest people on Forbes annual richest list make their money from money, whereas only 8% could make that claim in its first issue in 1982, and probably close to 0% when I first read my economic primer in 1966.


We will agree with Bill Gross with regard to his assessment of the financial industry, which is nothing but an enormous paper pyramid that shuffles papers on top of paper with the help of the Fed. It  has long lost its grounding on the health and development of the US economy and very little is being done to fix that problem. However, we think that what Bill Gross fail to pinpoint, which we consider primordial and central to all our economic activities is:  Sound Money! 
Ever since the world has gone away from sound money, inflation has gradually destroyed all economic values and prices;  Wall Street is just trying to catch up to the constant inflationary pressure created by central bankers. Wall Street is merely looking up for its own self-interest, like Bill Gross does!
Does Bill Gross support a return to the Gold standard as we do? Let's ask him someday!