World's Biggest Bond Fund Dumps All U.S. Debt

Pimco’s Gross Eliminates Government Debt From Total Return Fund

by Susanne Walker - March 9th, 2011 - Bloomberg News

Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., eliminated government-related debt from his flagship fund last month as the U.S. projected record budget deficits.

Pimco’s $237 billion Total Return Fund last held zero government-related debt in January 2009. Gross had cut the holdings to 12 percent of assets in January, according to the Newport Beach, California-based company’s website. The fund’s net cash-and-equivalent position surged from 5 percent to 23 percent in February, the highest since May 2008.

The world starts its purging of American debt, abandoning our out of control government to enemies like China. It appears China does not think it will need to invade America if it can simply buy America. Obama and the Democrats are fine with that.