Bill Gross on China, Secular Stagnation, and the Highly Leveraged “Negative Carry” Environment

In a Bloomberg TV Interview, Bill Gross of Janus Capital spoke with Bloomberg’s Tom Keene about the state of the global economy.
The interview and transcript below are well worth the time. Gross’ thoughts on negative carry are particularly interesting. I offer my comments beneath the transcript.
Partial Transcript
TOM KEENE: Bill, good morning to you, thrilled to speak to you tomorrow on the jobs report. Let’s talk about the more urgent matters of this market. First of all, Bill, China is the topic. Is this about China and their stock market? Or is there more going on on this January afternoon?
BILL GROSS: Yes, it is about China specifically, Tom. But there’s a lot more going on and we’ve talked about it in past months.
The global economy is still highly levered and central banks are artificially elevating prices and keeping interest rates low.
It’s a highly levered world and when something gets out of whack like the Chinese currency or in terms of the oil price, then you see these movements everywhere.

This post was published at Global Economic Analysis on January 07, 2016.