The billionaire investor said that “all roads lead to inflation” in an interview with CNBC on Oct. 22. He added that he was long on gold and long on Bitcoin, stating that commodities are so “ridiculously under-owned.”
“I probably have some basket of gold, Bitcoin, commodities, and Nasdaq, something like that. And I own zero fixed income.”
“I’m long gold, I’m long bitcoin, I think commodities are so ridiculously under-owned so I’m long commodities,” says @ptj_official. “I probably have some basket of gold, bitcoin, commodities and Nasdaq, something like that. And I own zero fixed income.” pic.twitter.com/i152rZFlbs
— Squawk Box (@SquawkCNBC) October 22, 2024
Store of Value Assets Are King
Bitcoiner Anthony Pompliano commented on the revelation, jesting that it was “probably nothing!”
“Paul Tudor Jones going long on Bitcoin and gold speaks volumes,” replied the PiWhales account to its 514,000 X followers.
“Inflation as a solution to the debt problem could make decentralized assets like Bitcoin even more attractive,” it added.
Bitcoin came to within 6.5% of its peak price on Oct. 21 but has retreated back to the $67,000 level over the past couple of days.
Gold prices are now up 33% this year and trading above $2,750 for the first time in history. Meanwhile, silver prices are now trading at their highest level since 2012, up over 46% in 2024.
Jones explained that inflation will occur no matter what the central bank does because the country needs to tackle its debt-to-GDP problems.
“If we’re trying to stabilize debt to GDP, we want to run the most dovish monetary policy that we can without letting inflation become too much of a tax in the citizenry.”
The total US public debt as a percent of gross domestic product is currently 120%, according to the Federal Reserve Bank of St. Louis.
A high debt-to-GDP ratio can limit a country’s ability to respond to economic shocks, increase the risk of debt default, and lead to higher interest rates. It can also lead to a vicious cycle of debt, inflation, and reduced economic growth potential, ultimately threatening the country’s long-term economic stability.
The US national debt is currently a whopping $35.7 trillion, and it is increasing exponentially.
It took 221 years for the US to create the first $12 trillion of national debt.
We added another $12 trillion of debt in the last 5 years.
Insane. pic.twitter.com/Y4CmOGI1bH
— Anthony Pompliano (@APompliano) October 22, 2024
Central Banks Disagree
However, the world’s central banks and masters of monetary policy will paint a different picture. In its World Economic Outlook forecast on Oct. 22, the International Monetary Fund claimed that “the battle against inflation is largely won.”
Global inflation rates surged during the Covid lockdowns, but they have come down since. However, the real rate of inflation, which is measured by the ever-increasing cost of fuel, food, energy, and utility bills for regular consumers, continues to increase in most countries.
Paul Tudor Jones warned about inflation in 2022, predicting that Bitcoin and Ethereum prices would rise.
