Tags: Pimco | Debt | Deficit | gross

Pimco's Gross: Debt Deal Won't Make Significant Dent in Deficit

Tuesday, 02 Aug 2011 09:10 AM

Bill Gross, who runs the world’s biggest mutual fund at Pacific Investment Management Co., said the compromise reached by Congress won’t make a “significant dent” in the U.S. deficit.

“In addition to an existing nearly $10 trillion of outstanding Treasury debt, the U.S. has a near unfathomable $66 trillion of future liabilities at ‘net present cost,” Gross wrote in a monthly investment outlook posted on the Newport Beach, California-based company’s website today.

The Senate is scheduled to vote today to ratify a U.S. debt-limit compromise that will avert a default even as it defers decisions on the nation’s finances to a bipartisan panel and may only modestly reduce deficits while slowing economic growth.

The House voted 269-161 yesterday to approve the measure, which raises the national debt ceiling enough to fund the government until 2013 and threatens automatic spending cuts to enforce a goal of cutting $2.4 trillion over the next decade. That goal falls short of the long-term deficit savings that President Barack Obama and Republican leaders initially sought.

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Bill Gross, who runs the world s biggest mutual fund at Pacific Investment Management Co., said the compromise reached by Congress won t make a significant dent in the U.S. deficit. In addition to an existing nearly $10 trillion of outstanding Treasury debt, the U.S. has...
Pimco,Debt,Deficit,gross
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2011-10-02
Tuesday, 02 Aug 2011 09:10 AM
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