Bond King Bill Gross: Canadian, Australian or German Debt Are Safer than U.S. Debt

The headline making the rounds today is:

US Is in Even Worse Shape Financially Than Greece: Gross

But I think the more interesting aspect of Bill Gross’ interview with CNBC is the bond king’s advice about which countries’ bonds are worth buying:

“Why wouldn’t an investor buy Canada with a better balance sheet or Australia with a better balance sheet with interest rates at 1 or 2 or 3 percent higher?” he said. “It simply doesn’t make any sense.”

Should the debt problem in Greece explode into a full-blown crisis—an International Monetary Fund bailout has prevented a full-scale meltdown so far—Gross predicted that German debt, not that of the US, would be the safe-haven of choice for global investors.

As an American, I am sad that our country is so financially unsound. Too bad we didn’t follow Iceland’s example. Or that of the Founding Fathers. The bottom line – despite Geithner’s lame protestations – is that we wouldn’t be in this situation today if we had broken up the too big to fail banks.

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