Tag: paul tudor jones

20% of our tax dollars just to pay *interest* on America’s debt

Paul Tudor Jones on our fiscal predicament:

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JONES: So, if you just think about what’s happened in since really in the last three or four months, we’re getting ready, I don’t know if we’ll have a Minsky moment in the bond market. I don’t know if we’ll have that point of recognition. But we’re going to have the grinding reality that with 122 percent of debt-to-GDP, as interest costs go up in the United States, you get in this vicious circle where higher interest rates cause higher funding costs, cause higher debt issuance, which cause further bond liquidation, which cause higher rates, which put us in an untenable fiscal position. We, our interest bill is going to, very shortly, exceed our defense spending, in just a couple of years. Our, it probably in four- or five-years ceteris paribus will have the highest interest bill as a percentage of GDP that we’ve ever had. It will probably be close to 20 percent of your taxes will go to pay interest on the debt unless we do something.

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Source: https://twitter.com/3xliquidated/status/1715509499023233232?s=46

Paul Tudor Jones: A magical moment in a great documentary

The documentary is a fascinating and brief slice in the work life of Paul Tudor Jones, one of America’s all time great macro traders.

There’s this one moment that really stands out to me, where Jones, after losing about 5% of his portfolio in a single terrible trading day (at that time, ~$6M dollars), says this:

“The money’s irrelevant but it’s the whole concept of having analysis that’s just so completely off the mark. It’s a mental blow, it’s an intellectual blow, and it’s part of the business. This is going to happen a thousand times in the next five years to me, so it’s just something you learn to live with. I hate it.”

Talk about timeless advice.

First, his focus on PROCESS and ANALYSIS instead of outcome.

Second, his mental preparation for future pain. On the heels of a terrible performance, he reminds himself that this is going to happen 1000 MORE TIMES in the next 5 years.

Pretty remarkable. I encourage you to watch it, as he’s apparently known for trying to remove publicly available copies of this documentary.