Personally, I think this guy is correct. Thank you progressives.
Dr. Steve Sjuggerud writes: "I am confident that this country will default on its debt," Bill Gross wrote this week.
Bill Gross is not some anti-American crackpot... quite the contrary.
He manages the world's biggest bond fund. As the founder and chief investment officer of PIMCO, he's responsible for over $1.2 trillion in assets – mostly in bonds.
And last month, in his main bond fund, he got rid of all of his U.S. government bonds.
"[I've] been selling Treasurys because they have little value within the context of a $75 trillion total debt burden," Bill said. "Unless entitlements [namely Social Security, Medicare, and Medicaid] are substantially reformed, I am confident that this country will default on its debt."
How would that happen?
"Not in conventional ways," he explained, "but by picking the pockets of savers."
He says the government will pick your pocket through "inflation, currency devaluation, and low to negative real interest rates."
These things are all happening right now...
The currency is already weak... The U.S. dollar index is right around the lowest levels it's ever been since we went off the gold standard in the early 1970s.
Answer by agentwanda at 4:37 PM on Apr. 5, 2011
I agree with him. I feel bad for my grand kids, my great grand kids and my great great grand kids.
I lived through the great depressionand was hoping I would never see anything like it again. I feel bad for all you younger people, at my age I will probably not have to live through it again.
Answer by Natesmom507 at 4:45 PM on Apr. 5, 2011
Answer by LoriKeet at 4:46 PM on Apr. 5, 2011
Answer by May-20 at 5:40 PM on Apr. 5, 2011
Answer by agentwanda at 6:12 PM on Apr. 5, 2011
Answer by jesse123456 at 6:17 PM on Apr. 5, 2011
Answer by LoriKeet at 7:09 PM on Apr. 5, 2011
Answer by jesse123456 at 7:19 PM on Apr. 5, 2011
Answer by tinamatt at 8:17 PM on Apr. 5, 2011
Answer by jewjewbee at 8:46 PM on Apr. 5, 2011
Next question overall
HELP me hold in the crazy b*tch that's trying to bust loose....