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Dear Reader, This week Paul Tudor Jones – billionaire investor, hedge fund manager, wise human being – did an interview with CNBC I thought was worth talking about. 
There’s a drumbeat of big, sophisticated, professional investors coming out in recent weeks and really ringing the bell and warning the country about what is happening fiscally. === The “Buffett Indicator” Predicts 62% Stock Market Crash
The last time the “Buffett Indicator” flashed this red was in 2000 – right before the market crashed 50%.
Take these 4 steps to protect your retirement here. === Basically, what we’ve been saying here which is that our country is at a financial crossroads … We have a couple of choices. In Paul Tudor Jones’s interview on CNBC, which I encourage you to watch, he said some very serious stuff. I took notes and I wanted to share them with you. He said: “We are going to be broke really quickly unless we get serious about dealing with our spending issues.” Like me, he believes a market reckoning on spending is coming after the election – that we’re going to have to get serious. Not getting political here, but he is also a Trump supporter and it pays to hear what he’s saying because he’s probably saying this stuff to Trump privately, as are some other very savvy big investors. What he’s saying is, we have to get our fiscal house in order! He lists in this interview a couple of points where we could stabilize debt-to-GDP. He says you have three options that are probably the most popular: - Let the Trump tax cuts expire, which would save $390 billion.
- Raise payroll tax by 1% applied to all wages, which would save $260 billion.
- Increase the corporate tax rate from 21% to 25% which would save $75 billion.
In his interview Andrew Ross Sorkin said to him, you want to raise taxes?! And his answer was, I don’t want to raise taxes. Of course not. Who wants to raise taxes? But this is what we need to do to stabilize spending. Period. Interest this year alone is bigger than every line item except Social Security … It’s bigger than defense spending … Medicare … Medicaid … and if we don’t get this in order it’s going to get bigger than Social Security. Think about it – that’s when it’s going to start hitting you, directly. No matter how you look at it, he says, all roads lead to inflation. I’ve come to the same conclusion that this man and many other investors have. And why do all roads lead to inflation? Because when you start spending like this, people start to sell off bonds to demand higher rates. They’re like, you guys can’t get your house in order – for us to lend you money, you’re going to have to pay us higher interest rates. So basically, we’ll see a spike in interest rates if this doesn’t get under control. And we’re already starting to see some of that now. He also talked about – and this is something we’ve talked about here a lot, too – the way to position yourself for this. More focus on gold, commodities, things that are effective hedges against inflation. This is the third or fourth person in the past month that I’ve talked to you about and I’m glad they’re ringing the bell on this. And these are credible people. A lot of people out there talk a lot of nonsense – you know, the talking heads that are part of the Wall Street machine, the Wall Street casino … I don’t talk to you about them. Because they just want to be heard. They just want people to look at them. They talk a lot but they don’t say anything. But when credible, serious thinking people come out and say these types of things, I talk to you about them. Because these are people who understand the big picture. And they’re true patriots – people who understand that what’s in the best interest of this country in the long-term is to get our fiscal house in order. Now, this is the last of these I’ll do for a little while – I certainly don’t want to get “lecture-y.” I don’t want to be like Al Gore in 2000 where he’s pointing his finger just lecturing at people – that’s such a turnoff. But I am ringing the bell on issues that are very important to me because this is the role I’m playing in life … I don’t know why God made me to understand finance and investing and explain it in a simple way (I’ve been told). I’m just going to do the best I can. Thank you for listening. "The Buck Stops Here," 
P.S. You know I want to make you profits … And we’ve had a tremendous year! But most important of all to me, is to protect your money, and mine from potential threats. And this is the biggest threat I see facing America right now. Please, don’t ignore this one. | 
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