Julian Robertson: Markets will pay the piper
Source: http://www.investmentpostcards.com/2009/10/02/julian-robinson-us-may-face-armageddon-if-japan-and-china-dont-buy-debt/Posted on Friday, October 2nd, 2009 | In Investing Lessons, Market Commentary
Julian Robertson, Tiger Management founder and chairman, is always worthwhile listening to. I somehow missed his appearance on CNBC last week, but the content is still as topical as a few days ago. My apologies for the delay.
The US is too dependent on Japan and China buying up the country’s debt and could face severe economic problems if that stops, Robertson told CNBC.
“It’s almost Armageddon if the Japanese and Chinese don’t buy our debt,” Robertson said in an interview. “I don’t know where we could get the money. I think we’ve let ourselves get in a terrible situation and I think we ought to try to get out of it.
“If the Chinese and Japanese stop buying our bonds, we could easily see [inflation] go to 15-20%,” he said. “It’s not a question of the economy. It’s a question of who will lend us the money if they don’t. Imagine us getting ourselves in a situation where we’re totally dependent on those two countries. It’s crazy.”
There are two versions of the interview – short and extended. Both are given below.
Short version (8 minutes):
Extended version (31 minutes):
Source: CNBC (here and here), September 24, 2009.
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 About Prieur du Plessis (http://www.investmentpostcards.com)
Prieur du Plessis has 25 years’ experience in professional investment research and portfolio management. More than 1,000 of his articles on investment-related topics have been published in various regular newspaper, journal and Internet columns. He has also published a book, Financial Basics: Investment. Prieur is chief executive and principal shareholder of South African-based Plexus Asset Management, which he founded in 1995. The group conducts investment management, investment consulting, private equity and real estate activities in South Africa and other African countries. Plexus is the South African partner of John Mauldin, author of the Thoughts from the Frontline e-letter, and also has an exclusive licensing agreement with California-based Research Affiliates for managing and distributing its enhanced Fundamental IndexTM methodology in the Pan-African area. Prieur is 52 years old and lives with his wife, television producer and presenter Isabel Verwey, and two children in Cape Town, South Africa. His recreational activities include long-distance running, motor cycling, traveling and reading. |
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