Courtesy of Karl Denninger, The Market Ticker
The portion of PIMCO’s $236 billion Total Return Fund held in U.S. government debt, including U.S. Treasuries, was -3 percent of total assets in the fund as of March, down from zero in February, the firm’s website showed.
If you didn’t watch my video from Sunday on this, you need to. Gross is betting that we will not take our foot off the accelerator and accept the necessary contraction we fraudulently "avoided" in 2007, and instead will hit the wall at full speed.
When the head of the largest bond fund in the world shorts the US Treasury, Congress and Administration you had damn well better pay attention.
In case you missed it, here is the video again…..
There is no escaping the arithmetic.
