Julian Robertson: “We’re in for some real rough sledding”
This is how the famed investor and Chairman of Tiger Management began an interview with CNBC yesterday. Yes, the recession is probably over, he says. But, in his view there is likely to be problems going forward because the U.S. has so much debt.
The money quote: “It’s almost Armageddon if the Chinese and Japanese don’t buy our debt.”
I am not sure I agree because a recession caused by a fall in the dollar’s value will almost certainly mean a reduction in imports and an increase in savings and domestic purchases of government bonds, something we are already witnessing.
As to inflation versus deflation, consider Robertson an inflationista. He is betting on inflation going higher in his investments. “We could easily see 15 to 20” percent inflation if the Chinese and Japanese go on strike, Robertson says.
Below are both the short video, which runs for the first eight minutes of his interview, and a longer full 30-minute version beneath it.