Gross: The Real Economy Is In The Cold Winter, The Risk Of Deflation Is Approaching.

Debt King Grosse released second investment prospects after joining Janus Capital Group Inc on Monday.

In the report entitled "The Trouble with Porosity and Prosperity", Gross said that although the global central bank has been working to raise inflation, it has achieved little success.

Deflation risks are increasing and investors' wealth may shrink.

The economic base of twenty-first Century is very fragile, as if it were built on sand and gravel.

The Central Bank of the world is trying to push up inflation, but at present, more effect is reflected in the rise of financial asset prices, and the real economy has been very limited.

Stopping printing money seems to be a way to reduce the purchasing power, but the global financial market seems to have been unable to break away from this stimulus.

What is even more worrying is that traditional stimulus has been hard to help the economy.

The financial market is booming, but the real economy is in the cold winter.

In 2014, over 10 years in the United States.

The return is 18%, which exceeds the return of the S & P index.

CPI has been under 2% for two years, whether it is business or not.

They are reluctant to spend.

For investors, sooner or later, they will realize that the inflation mode of modern society (low inflation) can meet the needs of existing survival, but in the long run, the pressure brought by future education, medical treatment and retirement will be hard for them to face.

The real economy needs more stimulus, but the emphasis should be on fiscal policy.

The government needs to shoulder greater responsibilities.

If the central bank and the government can not finally inflate inflation, the probability of the era of deflation will increase.

Deflation will not be good news for investors. Asset shrinkage will be inevitable.

At the beginning of 2014, Lagarde, chairman of the National Monetary Fund (IMF), warned the developed economies of the risk of deflation.

Gross said last month that investors should say goodbye to two digit growth expectations.

World growth is entering a new mode.