K-12 Tax & Spending Climate: US hooked on 'crystal meth' debt, says Gross

Dan McCrum:

Bill Gross has compared the US government's reliance on debt financing to a "crystal meth" addict, in the latest in a series of dire warnings from one of the most influential investors in the bond market.

"The US, in fact, is a serial offender, an addict whose habit extends beyond weed or cocaine and who frequently pleasures itself with budgetary crystal meth", said Mr Gross, who manages the $273bn Total Return bond fund for Pimco.

In an investment outlook that began with a discussion of the 69-year old investor's lack of long-term memory, Mr Gross returned again to a theme that he has visited over the last decade: unsustainable US spending.

Mr Gross places the US in a "ring of fire" that includes countries with precarious finances such as Greece, Spain and Japan.

Posted by Jim Zellmer at October 8, 2012 1:04 AM
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