Bill Gross: Unless deficit is closed, the USA will be destroyed.

Discussion in 'Economics' started by Grandluxe, Oct 4, 2012.

  1. By Jeff Cox | CNBC – Tue, Oct 2, 2012 10:55 AM EDT

    Stocks and bonds will be virtually worthless and gold and hard assets will be the only investments worth having unless the U.S. tames its addiction to debt and deficits, Pimco's Bill Gross said Tuesday.

    In his widely followed monthly Pimco investor newsletter, the CEO of the company that runs the largest bond fund in the world paints a stark picture of the domestic financial picture.

    "Unless we begin to close this gap, then the inevitable result will be that our debt/GDP ratio will continue to rise, the Fed would print money to pay for the deficiency, inflation would follow and the dollar would inevitably decline," Gross wrote. "Bonds would be burned to a crisp and stocks would certainly be singed; only gold and real assets would thrive within the 'Ring of Fire,'" another Gross term for U.S. economic conditions.

    Should that happen, the results both for investors and the U.S. economy would be catastrophic, he concluded.

    Gross said. "It would be a scenario for the storybooks, that's for sure, but one which in this instance, investors would want to forget. The damage would likely be beyond repair."

  2. Is he still "short" $782-quadrillion of stocks and bonds? :confused: :eek: :p :D :cool: :) :( :mad:
  3. pspr


    Remember that his concern is for the protection of his bond portfolio from currency devaluation. With interest rates at all time lows and the Fed pumping like crazy for the third time, I'm sure he is very concerned about a devaluation which will hit bond values hard.

  4. We ALL should be so concerned. Most people have their head-in-the-sand/up-their butt about this risk.

    As per historical precedent, AMERICA IS DOOMED... unless the politicos grow a pair and do something about this.

    :mad: :mad:
  5. wjk


    That's funny! Which side of the trade is he trying to get us on?
  6. Lucrum


    I dunno but I own some PTTAX:US and it's approaching 5 year highs.

  7. keep your enemies close and your long stop even closer.

  8. emg


    USA will not be destroyed. All the usa gov has to do is file Chapter 11 Bankruptcy
  9. they can't.

    all are harvard grads.

    higher education.

    " they don't lose, they just don't lose........"

  10. Actually funny, but sad. How many of our past presidents are "Ivy" league grads, and how many of our past bank geniuses? Boy they have all put us in a better place based on their fantastic educations at those top Schools! Thank God all the Elite institutions exist for the betterment of our country! I have been harping on this little(?) point for awhile now. Really these clown schools with great marketing are so much better at producing people of value? You have to be a complete idiot to buy into that crap, but hey, they have waiting lists so more power to them.
    #10     Oct 4, 2012