Bond holders

http://www.bloomberg.com/news/2010-08-13/pimco-s-el-erian-discusses-deflation-fed-u-s-economy-video.html

I am concerned that bond holder managers do not understand the mechanisms of inflation/dis-inflation. Like the Fed, general non-specific devaluation comments are not beneficial to bond holders.

We have more of a chance to see inflation. We are no longer in a devaluation phase of the dollar. The cost for demand of the dollar is 300% What he is doing by discussing, this is showing the disparity between what is perceived and what is known. This ratio use to be much higher. Bond holders are the only people who want inflation.

This man should of at least waited to discuss this after the Michigan confidence numbers were released. The way the market reacted to those numbers shows there is a cost for stability. That is inflation. As a bond manager he should have discussed this new bit of information showing inflation and stability.

The Bond managers should have experience in transforming the system without the knowledge of the system. They manage more money than the entire GDP of the world over time. They should be explaining how the interest of the money they are making goes to support hospitals, education, infrastructure... What the bonds were issued to support.