PIMCO’s Bill Gross says that if the U.S. doesn’t reverse its big deficits and rising debt, it “could resemble Greece within a decade.”

In an interview with U.S. News & World Report, Gross also says he doesn’t think the “New Normal” will end anytime soon. “Don’t think that anytime soon we’re going back to the ‘old normal’ because these cycles of de-levering are biblical in nature,” he says. “An investor probably has to look forward to higher inflation. Slower growth and higher inflation — that’s not a positive, by any means. Individuals would want it to be just the reverse. The de-levering and the check-writing on the part of central banks, that’s really what produces the situation.”

Gross reiterates his belief that, in this climate, investment returns won’t match those we’ve seen in previous times. He is finding opportunities in higher-growth countries like China, Brazil, and Mexico. He says that when looking for stocks, he personally targets those with dividend yields of 3% or 4%. He says that an investor who is 30 years old should have about 80% of their portfolio in dividend-paying stocks and the other 20% in bonds; the percentage of bonds should rise as you get older, he adds.