More From Bill Gross

via Ezra Klein:

Bill Gross is the manager director of PIMCO, which makes him one of the most important bond traders in the world, if not the most important. And so his exit from the Treasury market a few months ago, plus his intense and very public concern over the deficit, has attracted a lot of concern. “Keep that in mind when you hear people arguing about austerity,” wrote Megan McArdle. “People like Bill Gross are the ones we ultimately need to convince, because they’re the ones whose defection will precipitate a crisis. And he’s not buying either supply-side claims that tax hikes will cause disaster, or the super-Keynesian argument that we can’t cut spending because the economy will contract so fast that we’ll actually end up with a bigger deficit.” Or so we thought. But in an unusual mid-month note to his investors, Gross hammered the “anti-Keynesians” in both parties who believe “that fiscal conservatism equates to job growth.” The truth, he says, is just the opposite. “Fiscal balance alone will not likely produce 20 million jobs over the next decade. The move towards it, in fact, if implemented too quickly, could stultify economic growth.”
Gross goes on to spend some time mocking the “ivory tower theorem” that deficit reduction will convince consumers to spend more now because they’ll worry less about taxes and service cuts later. “I know of no family,” he writes, “who, after watching the Republican candidates’ debate in New Hampshire, went out the next day and bought themselves a flat screen under the assumption that their Medicare entitlements would be cut in future years and the U.S. budget balanced.” That theory belongs “in the trash bin of theses and research aimed more towards academics than a practical remedy to America’s job crisis.”

With actual investors saying such things, do you think Republicans will respond.  I'll go with no.  Theories and beliefs are much more significant than actual results to them.  They don't care if they cripple the economy, because they can remain ideologically pure.  Screw them.  Stupidity doesn't make good ideology, or good public policy.