link here to article
Bill Gross, who heads up the world's largest bond fund has a message for Washington politicians who are on the warpath to cut budget deficits. He tells them all of the right things but it won't make much of a difference. The GOP's strategy for the 2012 election cycle is to run on a platform that pits them against their traditional rivals, the "tax and spend" democrats. They understand that kind of campaign and they have invested heavily in it. They will continue to run on that platform. The democrats seem to fear that attack, and they appear to be on the defensive. The administration has been struggling to show that it is equally concerned about deficit reduction. Neither party seems to believe that the public has more pressing concerns.
It is ironic that Bill Gross has to tell Washington that restoring economic growth is more important than cutting deficits to please the bond market. Our deficits are affected more by slow growth, and uncertainty about future growth, than they are by "excessive government spending". That is what worries the bond market.
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