|
CNBC'S MOST SHARED
- Unemployed? Bored? Make Money Playing Beer Pong
- Social Networking's 'Naked' Truth
- The Highest Grossing (Inflation Adjusted) Movies of All Time
- WPP's Sir Martin Sorrell on the Ad Recession
- Geek Squad V. Gizmodo
- Merrill's McCann Seen as UBS Wealth Frontrunner
- Warren Buffett's Top Three Investment Rules for the Average American
- Why You Should Watch Fund Flows
- Eric Schmidt on Government Scrutiny and Economic Recovery
- Fast Funds: Hot Ways To Play China
- Stimulus Will Kick in Later this Year: President Obama
- Lender CIT Group Hires Premier Bankruptcy Adviser
- Government Selling Bank Stakes for Too Cheap: Panel
- Buffett's Top 3 Investment Rules for Average Americans
- Market Insider: Earnings Loom in the Week Ahead
- Bulls Get Summertime Blues, But It's Hot Fun for Bears
- As Banks Fail, Strong Institutions Become More Visible
- GM IPO in Second Quarter 2010 at the Earliest: CFO

- Merrill's McCann Seen as UBS Wealth Frontrunner
- Eric Schmidt on Government Scrutiny and Economic Recovery
- Market 360: The Week's Best & Worst
- Geek Squad V. Gizmodo
- Brandt: Google Chrome OS in the Post-PC Age
- Other People Are Weirder Than We Are
- Bank Failures: Is The Nightmare Over? (Video)
- California Here I Go? No.
- Roginsky: No More Mr. Nice Guy
- Commercial Conundrum
Americans are fooling themselves if they think U.S. inflation is under control, the manager of the world's largest bond fund said.
![]() |
Bill Gross |
Bill Gross, chief investment officer of Pacific Investment Management Co (PIMCO) said in his June investment outlook that he has been arguing for some time that inflation statistics "were not reflecting reality at the checkout counter."
He said statistical practices in calculating price growth had favored lower U.S. inflation over the last 25 years and called for change.
"Today's world, including its inflation rate, is changing. Being fooled some of the time is no sin, but being fooled all of the time is intolerable," Gross said.
"Join me in lobbying for change in U.S. leadership, the attitude of its citizenry, and (to the point of this Outlook) the market's assumption of low relative U.S. inflation in comparison to our global competitors."
The comments from Gross come a day after the Federal Reserve slashed its 2008 U.S. economic growth forecast but also signaled that mounting concerns over inflation would make further interest rate cuts unlikely.
Gross said that developing economies such as Brazil, Russia, India and China were obvious choices for investment dollars.
U.S. Treasury bonds were not favored investments due to negative real yields, Gross said.
He added that Treasury Inflation Protected Securities (TIPS) were difficult to value because of the "artificially low inflation number" arising from statistical quirks.








