PIMCO’s Bill Gross has been uber-negative on US Treasuries in part on the notion that when QE2 runs out, there will be nobody left to buy our debt.
Now this morning on CNBC, his partner Mohamed El-Erian says QE2 wasn’t necessary.
So which is it? Is the Fed needed to fund US spending, or was it not necessary?
All of this seems to underline the fact that a lot of what Bill Gross says is designed to signal something via the media (book talking), rather than actually providing useful analysis.