Billionaire hedge fund manager Paul Tudor Jones told CNBC Tuesday unless the government gets serious about cutting spending, the consequences will be dire.
"We're going to be broke really quickly unless we get serious about dealing with our spending issues," Jones said.
Jones, who runs Tudor Investment Corporation, said increased government spending could cause a sell-off in the bond market, leading to increased interest rates. Jones said he will not own fixed income assets and will bet against the longer-dated part of the bond market.
"The question is after this election will we have a Minsky moment here in the United States and U.S. debt markets?" Jones said, referring to a term for a dramatic decline in asset prices.
Jones said business deficits increased under both former President Donald Trump and President Joe Biden. He said he was concerned about inflation if Trump wins and said when it comes to budgeting, neither Trump nor Vice President Kamala Harris are "suited for the job ahead of them."
Jones said to reduce the deficit, the tax cuts passed in Trump's first term could expire or there could be a major reduction in the federal workforce.
The federal deficit increased 8% to $1.8 trillion in 2024, according to the Treasury Department.
Sam Barron ✉
Sam Barron has almost two decades of experience covering a wide range of topics including politics, crime and business.
© 2024 Newsmax. All rights reserved.