18 hours ago another revealing story appeared in the Finacial Times. Bill Gross, the manager of PIMCO, the worlds largest bond fund has rounded on the austerity measures being pursued by the US and Europe.
In a quote that I think will become famous, Mr Gross said:
The UK and almost all of Europe have erred in terms of believing that austerity, fiscal austerity in the short term, is the way to produce real growth. It is not.
Now the thing is you have to consider who this guy is. He's not a left wing trade-union activist. He is a mega-capitalist who makes money trading bonds - big bonds issued by governments. Also consider that this is a complete u-turn as in 2010 he was criticising the UK for carrying too much debt. At a guess he has changed his view after the Reinhart Rogoff fiasco came to light earlier in the week.
This story sheds light on how quickly the support for austerity is waning, and probably hints at a forthcoming about turn in government policy in Europe and the US, so lets get ready for the boom we've been waiting for for so long.
http://www.ft.com/intl/cms/s/0/6c023bdc-a93c-11e2-a096-00144feabdc0.html#axzz2RHZBeAMZ