{"id":643475,"date":"2010-01-26T10:42:00","date_gmt":"2010-01-26T15:42:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/pimcos-ring-of-fire-chart-shows-the-true-state-of-sovereign-debt-2010-1"},"modified":"2010-01-26T10:42:00","modified_gmt":"2010-01-26T15:42:00","slug":"pimco-the-us-falls-into-the-sovereign-debt-ring-of-fire","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/643475","title":{"rendered":"PIMCO: The US Falls Into The Sovereign Debt Ring Of Fire"},"content":{"rendered":"

In the latest PIMCO investor letter<\/a>, Bill Gross brings up a chart he likes to call “The Ring of Fire.”<\/p>\n

As you can see, this chart\/graph details the amount of debt a country has in relation to their GDP.<\/p>\n

Countries in the fire zone are headed for hell in a handbasket.PIMCO predicts these countries, which include the U.S.<\/a>, will increase public debt<\/a> to greater than 90% over the next few years, which will in turn stall growth.<\/p>\n

PIMCO: The most vulnerable countries in 2010 are shown in PIMCO’s chart “The Ring of Fire.” These red zone countries are ones with the potential for public debt to exceed 90% of GDP within a few years’ time, which would slow GDP by 1% or more. The yellow and green areas are considered to be the most conservative and potentially most solvent, with the potential for higher growth.<\/p>\n

Don’t miss: The world’s 10 biggest sovereign risks ><\/a><\/strong><\/p>\n

\"PIMCO<\/p>\n

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