"America's debt is not its biggest problem." So reads the headline of an article in The Washington Post by Bill Gross, renowned head of the world's largest bond fund, PIMCO. Here's what Mr. Gross thinks America's "biggest problem" is: But while our debt crisis is real and promises to grow to Frankenstein proportions in future years, debt is not the disease -- it is a symptom. Lack of aggregate demand or, to put it simply, insufficient consumption and investment is the disease. Debt has been simply an abused sovereign and private market antidote to sustain it. We and our global market competitors are and have been experiencing a lack of aggregate demand for several decades. It is now only visibly coming to a head, as the magic elixir of leverage is drained and exhausted. This potentially fatal disease of capitalism is a result of several long-term secular phenomena: Gross advises: "It is critical for politicians and investors alike to distinguish between cause and effect, disease and...(Read Full Post)