PIMCO’s Bill Gross says he doesn’t think the U.S. will seriously tackle its deficit issues until the 2012 presidential election, and says blue-chip U.S. stocks are a “much more attractive” alternative to Treasuries based on their current yields.

“It’s obvious that both Democrats and Republicans want to address the problems with spending and, yes, want to address the problem with revenue-raising,” Gross told CNBC. “It’s probably a few years away and debt holders will simply have to adjust to that stretch of a time span.”

Gross also says a temporary default on debt payments by the U.S. would be a “disastrous signal to the world credit markets”. It would impact the dollar more than bonds, he says, as investors would turn to the Euro and Chinese yuan.

With questions about the U.S. fiscal situation and the dollar, Gross says PIMCO is targeting debt in countries like Brazil, Canada, Mexico, and Germany.