“No politician is going to voluntarily raise taxes or cut spending. They're going to be forced to. And the only question is, are we now at that tipping point where the market's about to do that? And if you put a gun to my head, I'd say 60-40, we're down that path.”
Squawk Pod · October 2026
Paul Tudor Jones, asked by Andrew Ross Sorkin where interest rates go, argues that AI-related corporate debt issuance on top of sovereign borrowing could push the bond market to a breaking point. He recalls a Senate majority leader telling him deficits would only be fixed when the market forced it.
Transcript
No, I assume the president has a plan post-the election. Again, I don't know. I'm not privy to it, but I assume that he has a plan because clearly what's going on is untenable. It's not sustainable, I don't think, in the long run.
Let me ask you separately just about interest rates because that's the other big issue. We're living with $40 trillion debt on our books. Where do you think interest rates go this year? What do you think happens next year?
…that are so unsustainable, they break the stock market. I had an interesting conversation with a House, with the Senate majority leader who I'll leave unnamed, one of the parties. Okay. About eight or ten years ago, he said, listen, I can just tell you right now, we're never going to fix these deficits until the market makes us to. It's going to be just like 2008 and TARP. So that's the reality. No politician is going to voluntarily raise taxes or cut spending. They're going to be forced to. And the only question is, are we now at that tipping point where the market's about to do that? And if you put a gun to my head, I'd say 60-40, we're down that path. 60-40,
we're down that path.
We're down that path. But does
that mean it has to happen tomorrow or does that mean it's a year or two? If
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