One of the great investors, Paul Tudor Jones likely is responsible for much of the sell-off in equities this week. It also explains what is happening on the bond market with the long end rising.

His point on CNBC was that our government has ran up debt to 35 trillion dollars ..100% of gdp. They are paying interest on that debt and borrowing money in good times at rate of 2 trillion dollars a year and rising as far as the eye can see.

His point was exactly what we see.. while the fed can control short rates ..who is going to buy long bonds when the only way out of the debacle is to inflate their way out of it?

The last few days with the Fed foreshadowing more rate cuts, the 10 and 30 tr bond yields are rising.

Jones said how stupid one would have to be to buy long term bonds in our situation. Much of it is foreign debt holders . So you are at 100% of GDP headed to 200% and you expect people to buy bonds. Interest rates for mortgages and business loans will surely rise, causing increase in inflation, resulting in more wage demands and a price spiral. It will also put the dollar as world currency in jeopardy.


He is buying commodities and commodity stocks and gold and bitcoin. I'm not a market timer and don't pretend to say short term.moves in the body and stock market are lasting trends. But he is no dummy.