The U.S. government's debt and deficit issues aren't going anywhere no matter who wins the presidency next month, said Jones.
Billionaire hedge fund manager Paul Tudor Jones is betting on bitcoin (BTC), gold and commodities over bonds as he sees the U.S. government's debt and deficit issues worsening no matter who wins the presidency next month.
“I think all roads lead to inflation,” he said in an interview with CNBC Tuesday. "I'm long gold, long bitcoin." Tudor added that he would short fixed income, particularly longer duration paper.
The U.S. is at an "incredible moment in history," said Tudor, with the national debt rising to nearly 100% of GDP from 40% only 25 years ago. Whoever will be elected next month will have to deal with the issue, he added, but campaign promises of additional spending and tax cuts made by both Trump and Harris would only worsen the problem.
"We are going to be broke really quick unless we get serious about dealing with our spending issues," he said.
The only way out of the situation is to inflate and outgrow the debt burden, argued Jones. In this case, the Federal Reserve "should be easy" running nominal interest rates lower than inflation and supporting nominal economic growth above inflation.
He suggested a "basket of gold, bitcoin, commodities and Nasdaq, and zero fixed income."
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