Billionaire hedge funder Julian Robertson had strong words for Ben Bernanke about the debt situation in the U.S.
Speaking in Austalia recently, he had nothing good to say about the U.S.
He’s putting his faith in Australia, and perhaps China too.
Here’s what Julian Robertson had to say about the U.S. and its debt, according to The Australian:
“We are obsessed with not doing anything about it.”
“We are broke, broker than all get out… We prefer to put on the Santa Claus suit and celebrate Christmas.”
Quantitative easing was encouraging reckless spending. So investors bought “not just gold and silver but cotton, soybeans, you name it, they’re all rising.
The US dollar is now no longer the safe haven it was — “It’s not my refuge.”
The US approach to rectifying its financial problems is making it look as though “things will go along OK” when they would not, in the long run.
About the fund managers in U.S.:Australian fund managers are “a breath of fresh air” who are operating in a financial environment far more promising than what he sees back home.
It’s “a fascinating place and a new market.”
“It’s not a simple boom story.”
“There are more price dislocations, both ways, in stocks there, than almost anywhere else.”
“Demand out of China is going to depend on whether other economies around take up the supply of goods that China produces.”
There are “far more women in high positions in China than I ever saw in Japan.” (But men will soon outnumber women, which could impede the country, his son added.)
“One thing I will say is that Japanese investors never seemed to have a respect for return on investment, and the Chinese do.”
Bill Gross has a similar opinion of the U.S. debt situation. Click here to see why he thinks June 30th 2011 will be America’s D-Day.