Bill Gross, co-founder of Pacific Investment Management (Pimco), and manager of the largest bond fund in existence, recently stated: “Unless entitlements are substantially reformed, I am confident that this country will default on its debts, not in conventional ways, but by picking the pocket of savers via a combination of less observable, yet historically verifiable policies — inflation…”
Gross has recently eliminated all US Treasury bonds from his huge, multi-billion dollar fund.