The head of the world's largest bond fund has a prescription to jump-start U.S. GDP growth and create jobs: spend now, adjust entitlement later - so says Bill Gross, co-chief investment officer at Pacific Investment Management Co. (PIMCO).

In fact, Gross recommended direct government hiring to stimulate the economy, if necessary-- a bolder plan than the Obama administration's plans to-date.

You've got to create a demand for labor, Mr. Gross said, The New York Times reported. The private sector is not going to do it. Even if the government must do it directly, he said, Putting a shovel in the hands of somebody can be productive.

Gross manages the $245 billion Total Return Fund.

What's more, Gross, says current U.S. Treasury yields -- the 10-year U.S. Treasury bond was a 2.10 percent Monday afternoon -- are at a level that reflects a high probability of a U.S. recession.

They certainly reflect, in terms of their yields, not only a potential for a recession but the almost high probability of recession and the result of lowering of inflation -- that is key, Gross said, Reuters reported.

Public Policy/Economic Analysis: Gross, a Republican, is not taking a classic GOP stance, which only underscores the seriousness of the current U.S. economic condition. Demand has to be created from somewhere, and if the private sector doesn't step up to the plate and start hiring, Congress has to.