Margo D. Beller - Central Banks 'Printing Money Like Gangbusters': Gross
January 24, 2012 The world's central banks are "printing money like gangbusters," which could revive the threat of inflation , Pimco founder Bill Gross told CNBC Wednesday.
By putting "hundreds of billions" in currency in circulation, the central banks "can produce reflation—that's why we’re seeing the pop in oil, gold" and other commodities, he said in a live interview.
At the same time, "there’s the potential fordeflation if the private credit markets can’t produce some sort of confidence and solvency going forward," Gross said. "So we’re at great risk here, not only in the U.S. but on a global basis."
Gross has previously predicted a "paranormal" market in 2012 characterized by "credit and zero-bound interest rate risk" and fewer incentives for lenders to extend credit.
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