Bill Gross, PIMCO, sees ineffective plans from the Fed

By Kyle Chezum Updated on 9/25/2013

PIMCO founder and managing director, Bill Gross, is unreceptive of the idea that policymakers can simply jump-start the economy with a bundle of policies that push zero percent interest rates, quantitative easing and large-scale debt programs in the European Union.

Gross wrote in a commentary Monday commented that without growth via jobs or stock market gains, none of these fixes will take root.

"Growth is the elixir that seems to make every ache, pain or serious ailment go away." He continues that near-zero interest rates and discounted future cash flow makes it impractical to contribute to the economy if it's not combined with growth across the board.

Gross realizes that the lack of growth is the result of a rapidly changing economy that is more centered on technology than a structured workforce, as well as an aging global demographic.

"The situation, of course, is compounded now by high debt levels and government spending that always used to restart capitalism's private engine."

This vicious cycle will continue in similarity to Japan's lost decades if it is not stopped in time.