The U.S. is headed for a downgrade in its credit rating regardless of whether a deal is reached this weekend, according to PIMCO founder and managing director Bill Gross.
"Eventually there's a downgrade coming, it just depends on Moody's, S&P and Fitch and they're very slow-moving," Gross said. "This country has $10-12 trillion worth of outstanding debt. In addition however we've got about $60 trillion worth of liabilities. I call this Debt Man Walking."
Gross said the total liabilities for Medicare, Medicaid and Social Security put the U.S. among the worst countries in the world in terms of total debt. He added that the debt crisis has had negative implications for economic growth, interest rates, financial markets and the dollar.
"Congress has basically proven itself to be dysfunctional and this will carry on for months even if the crisis is basically resolved in the next few days," Gross said, arguing a failure to reach a compromise to raise the debt ceiling would result in delayed payments and a stain on the nation's reputation.