The U.S. economy may seem like it’s firing on all cylinders, but underneath the surface, a “debt bomb” could be on the verge of exploding, according to billionaire hedge fund manager Paul Tudor Jones.
The esteemed investor said in an interview with CNBC that he couldn’t deny the economy was strong, but that it was actually “on steroids” owing to massive government spending and borrowing.
“We’ve got a 6% to 7% budget deficit. We’re fast-pouring consumption like crazy,” Jones told CNBC.
The Commerce Department reported last month that the U.S. economy grew 3.1% in 2023, a better-than-expected performance that surprised some doomsaying analysts. At the same time, the U.S. deficit essentially doubled in 2023 to $1.7 trillion. So far this year, the national debt has surpassed $34 trillion, equivalent to 123% of total economic output in the U.S. And that’s set to grow even more: The Congressional Budget…
