PIMCO (the world’s largest bond fund) chief, Mr Gross, said that the United States must cut spending or raise taxes by 11pc of gross domestic product GDP over the next five to ten years, in order to preserve it’s role as a financial safe haven.

If we continue to close our eyes to existing 8pc of GDP deficits, which when including Social Security, Medicaid and Medicare liabilities compose an average estimated 11pc annual ‘fiscal gap,’ then we will begin to resemble Greece before the turn of the next decade,”

The warning comes after Moody’s has also warned the US that if it fails to control debt, then it will loose it’s AAA rating.

via PIMCO: America could resemble Greece before 2020 – Telegraph.