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5 Bumps

Will the US default on it's debt?

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.

http://www.marketoracle.co.uk/Article27353.html

Answer Question
 
Carpy

Asked by Carpy at 4:04 PM on Apr. 5, 2011 in Politics & Current Events

Level 39 (114,053 Credits)
Answers (19)
  • "Not in conventional ways," he explained, "but by picking the pockets of savers."

    Hmmm, they have been trying to find a way to steal 401K's for a while now; where there is a will and you know there is a very strong, selfish and "of no consequence to us" will... That would be a very nice egg for them to crack open and blow, huh?
    agentwanda

    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.

    Natesmom507

    Answer by Natesmom507 at 4:45 PM on Apr. 5, 2011

  • I guess it's time to start stuffing our mattresses!! LOL I mean, let's punish those who actually SAVE their money, and reward those who blow every penny they and then some the first chance they get!! It's soooo frustrating!

    Oh, and YES, I absolutely believe our debt to receipt ratio is on the brink of insolvency! SOMETHING has to give, and it needs to have happened YESTERDAY!! But then again, I'm just a party-pooping, worry wart!! :o)
    LoriKeet

    Answer by LoriKeet at 4:46 PM on Apr. 5, 2011

  • If he's right, money won't be worth anything, but food will be worth quite a bit.

    Hmm...that makes me think that taking stock of the pantry (again) seems like a really good idea....

    May-20

    Answer by May-20 at 5:40 PM on Apr. 5, 2011

  • Nates I agree, the future is not looking very bright for any of us...
    Lori, punishing those who save and pay their bills sure seems to be the way things are done now...
    May-20, I agree, money wont be worth much, maybe we should get some RUBLES...

    We are in serious trouble, why some opt for denial is beyond me...
    agentwanda

    Answer by agentwanda at 6:12 PM on Apr. 5, 2011

  • I'm going to say that I surely hope not, but I'm not too confident that it won't. It will take a herculean effort on all our parts to keep it from happening.
    jesse123456

    Answer by jesse123456 at 6:17 PM on Apr. 5, 2011

  • Sure is quiet in here, isn't it?! :o)
    LoriKeet

    Answer by LoriKeet at 7:09 PM on Apr. 5, 2011

  • It surely is, LK. I wonder where all the defense of why the default is a good thing OR how it is all Bush's fault is.
    jesse123456

    Answer by jesse123456 at 7:19 PM on Apr. 5, 2011

  • Answer? Yes. It's only a matter of time.
    tinamatt

    Answer by tinamatt at 8:17 PM on Apr. 5, 2011

  • "Not in conventional ways," he explained, "but by picking the pockets of savers."

    --
    IMO this statement doesn't really make any sense. Unless the savers are people who have little in material assets and have a conventional savings account only. Otherwise, the statement is completely false. People who are investors and also considered to be " savers" are right now making a fortune. Since March of 09 ( 2 yrs ago) the market has brung a return of over 50%.
    that rate beats any traditional savings account. So, savers in that arena are not having their pockets picked. Millionaires are made during recessions, and if this guy has 2 brain cells to rub together he knows that too.
    jewjewbee

    Answer by jewjewbee at 8:46 PM on Apr. 5, 2011

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