Pimco Says ‘Fear Not,’ Weak Dollar Will Spur Growth
Wednesday, December 9, 2009
Via Bloomberg:
Pacific Investment Management Co., which runs the world’s biggest bond fund, said the dollar is poised to fall and the decline may help spur the U.S. economy.
“Fear not the falling dollar,” Scott Mather, head of global portfolio management at Pimco, wrote in an article on the company’s Web site. “A gradually weakening dollar may help heal the U.S. economy” by encouraging demand for the nation’s exports, he wrote.
“There are few viable alternatives,” Mather wrote. “No other currency offers the size and liquidity — not to mention the political and legal stability — necessary to match the dollar as reserve currency of choice.”
“Deflation is a bigger near-term threat than inflation…”
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