Central banks: that's a feature, not a bug

Central Bankers at work

BILL GROSS: Central bankers have turned the economy into a 'casino' that threatens capitalism

Gross noted the theory of a martingale system, in which a gambler in a casino will eventually win if he or she continually increases the size of his or her bets with each loss.

Gross then compared the world's largest central banks — the Federal Reserve, the Bank of Japan, and the European Central Bank — to such a gambler, calling them "martingale gamblers without a purse."

"Our financial markets have become a Vegas/Macau/Monte Carlo casino, wagering that an unlimited supply of credit generated by central banks can successfully reflate global economies and reinvigorate nominal GDP growth to lower but acceptable norms in today's highly levered world," Gross wrote in the outlook.

What I don't get is why Gross or anyone else has ever thought that central bankers, especially European ones, have ever been advocates of capitalism in the first place. There are still a few members of the US Federal reserve who are. For now, anyway.