Julian Robertson: We are going to have to Pay the Piper

CNBC interviews Julian Robertson of Tiger Management. (Hat tip: Pragmatic Capitalist)

Some important notes from Mr. Robertson:

Part I
-“We’re totally dependent now on the Chinese and Japanese”
-Inflation risk is very high
-15-20% inflation rates if the Chinese and Japanese stop financing the US
-Japanese may be forced to sell long term bonds for economic reasons
-We still haven’t attacked the problem-spend, spend, spend and borrow,borrow, borrow



Part II
-I am shorting bonds
-We are going to have to Pay the Piper and I don’t know when that is
-Interest rate are going to go up
-put brakes on the economy, earnings will go down like crazy
-If we have 20% interest rates, 20% inflation and market goes up 5% that’s not a good scenario