Photo: Wikimedia Commons
U.S. citizens are like female praying mantises, who eat their mates, according to Pimco’s Bill Gross.That’s right, tax-payers in the U.S. are no different than the female mantis that devours its mate during love-making.
Americans, unlike their developed world counterparts, have been eating their fill lately, and supping at a dinner table laden with pork and tax breaks for all. Unequivocally, we have been playing the part of the female mantis, munching on the theoretical heads of future generations, while paying no mind to the wretches that will eventually be called upon to pay the bills.
But Bill Gross knows that all this eating and the American philosophy of “mañana” will eventually cause problems for the U.S. economy.
Thoose problems are already starting to appear. Gross sees the rise in commodity prices and weakening of the dollar as warnings. Wages will grow at a lower rate than commodity prices, and Americans will no longer be able to buy what they once could before.
And the big threat is in the national debt, which continues to swell. Gross warns of rising rates and quantities of debt suggesting, “future generations will pay for their parents’ mindless thrusting.”
And, if you’re going to invest in this climate, target emerging market corporate bonds, currencies other than the dollar, and developing market equities.
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