Bill Gross, the rock-star bond manager of Pimco (and now of Janus Capital), whom I frequently criticized on my blog for being wrong on Treasuries and the Fed, does a complete 180 in his recent letter to investors.

In short, after he dispenses with philosophical ruminations, he comes to conclusion that monetary policy isn’t evil. It simply isn’t enough to get us out of subpar growth and should be combined with fiscal policy (you know, like, spending by the government).

The real economy needs money printing, yes, but money spending more so, and that must come from the fiscal side – from the dreaded government side – where deficits are anathema and balanced budgets are increasingly in vogue.

Wow.