PIMCO: Will the U.S. Default on its Debt?

In his latest monthly commentary, PIMCO's Managing Director Bill Gross describes how unfunded Medicaid and Medicare dwarfs all other U.S. fiscal problems, including the outstanding national debt.

He writes, "Unless entitlements are substantially reformed, I am confident that this country will default on its debt; not in conventional ways, but by picking the pocket of savers via a combination of less observable, yet historically verifiable policies -- inflation, currency devaluation and low to negative real interest rates."

Click here for Gross' April commentary.