PIMCO guru: The bad news is that the bad news is worse
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Published: 14-Jun-2011

Bill Gross, head of the influential investment firm PIMCO (Pacific Investment Management Company), yesterday (Monday, June 13) rattled world financial analysts, as he reached a new level of gloom in his look at total U.S. debt. 

He has now projected U.S. taxpayer unfunded liabilities at $100 trillion. Such international estimates are echoed in several quarters, including among Oklahoma analysts who put unfunded state debt at billions more than recent estimates. 

Gross gave his $100 trillion estimate in an interview with CNBC, and in an online story by Jeff Cox. While the official U.S. debt is $14.3 trillion, guarantees for Medicare, Medicaid and Social Security drive the sum closer to $50 trillion, Cox reported. 

But, Gross says, when you blend in all other unfunded debts, including those associated with the financial bailouts of 2008-09, the total is “nearly $100 trillion.” 

Gross told CNBC, “"To think that we can reduce that within the space of a year or two is not a realistic assumption. That's much more than Greece, that's much more than almost any other developed country. We've got a problem and we have to get after it quickly."

Last week, USA Today provoked nationwide discussion when reporter Dennis Cauchon placed unfunded national debt at $62 trillion.
 
Sheila Weinberg of the Institute for Truth in Accounting, put the total debt at $75.4 trillion at about 8 p.m. Central Standard Time on Monday, June 13. 

Scattered analysts, such as those at the New America Foundation chide the increasingly gloomy debt projections. 

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