Billionaire hedge fund manager Paul Tudor Jones has issued a stern warning about the unsustainable trajectory of US debt, predicting that “all roads lead to inflation.”
Speaking on CNBC today, Jones explained that he is investing in assets like Bitcoin (BTC), gold and commodities instead of bonds because he expects inflation to rise.
“I think all roads lead to inflation,” Jones said. “I’m long gold and long Bitcoin,” he said, adding that he would be shorting fixed income, particularly long-term bonds.
Jones’ concerns echo similar warnings from leading figures including Federal Reserve Chairman Jerome Powell, who recently acknowledged that current U.S. debt levels are untenable. Fellow investor Stanley Druckenmiller also said he was bearish on U.S. government bonds, underscoring the growing anxiety among the financial elite.
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According to Jones, the US debt has reached almost 100% of GDP, a significant jump from 40% 25 years ago. With the national debt reaching alarming levels, he stressed that whoever wins the upcoming US presidential election will have to address this critical issue. However, Jones noted that campaign promises by both Vice President Kamala Harris and former President Donald Trump, which include additional spending and tax cuts, could make the debt crisis worse.
“If we don’t get serious about our spending problems, we’re going to go bankrupt very quickly,” Jones warned.
Jones argued that the only way out of this situation was economic growth that exceeded inflation and debt. He suggested that the Fed maintain low nominal interest rates and focus on increasing nominal economic growth above inflation.
In terms of investment strategy, Jones recommended a diversified portfolio that includes gold, Bitcoin, commodities, and Nasdaq stocks, while advising avoiding fixed-income assets altogether.
*This is not investment advice.
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Source: https://en.bitcoinsistemi.com/executive-managing-billions-of-dollars-warns-about-us-inflation-reveals-bitcoin-strategy/