Renowned billionaire hedge fund manager Paul Tudor Jones has issued a stark warning about the looming threat of inflation and the unsustainable trajectory of the U.S. national debt. In an interview with CNBC on Tuesday, Jones expressed his preference for assets like Bitcoin, gold, and commodities over bonds.
“I think all roads lead to inflation,” Jones stated unequivocally. “I’m long gold, long bitcoin.” He further indicated his intention to short fixed income, particularly longer-duration bonds.
Jones’s comments echo similar concerns raised by other prominent figures, including Federal Reserve Chair Jerome Powell, who has acknowledged the untenable nature of the U.S. debt levels. Additionally, legendary investor Stanley Druckenmiller recently revealed his bet against U.S. government bonds.
Tudor Jones emphasized the gravity of the situation, noting that the U.S. is at an “incredible moment in history” with the national debt soaring to nearly 100% of GDP from just 40% only 25 years ago. He expressed concern that the upcoming election and potential campaign promises of increased spending and tax cuts by candidates like Harris and Trump could further exacerbate the problem.
“We are going to be broke really quick unless we get serious about dealing with our spending issues,” Jones warned.
To navigate this challenging economic landscape, Jones proposed a strategy that involves inflating and outgrowing the debt burden. He advocated for the Federal Reserve to maintain nominal interest rates below inflation and support nominal economic growth that exceeds inflation.
Jones suggested a diversified portfolio consisting of gold, Bitcoin, commodities, and the Nasdaq, while avoiding fixed income. This
