It's not so long ago most of last year, in fact that the US central bank was aiming to keep raising rates steadily. What has happened to derail the process so rapidly?
Tudor Jones blames escalating protectionism and the trade war between the US and China in particular. "This rate-rising cycle was cut short because of the tariffs, so we need to see what impact they're going to have." That's presented both the Fed and investors with a challenge that most of them haven't seen before.
"Remember, we've had 75 years of expanding globalisation and trade, and we've built the machine around the belief that that was the way the world was going to be. Now all of a sudden it's stopped and we're reversing that."
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Tudor Jones reckons that the consequences could be ugly. "We haven't seen tariffs since 1929/1930... I think it will have a bigger impact economically than the market thinks" it will. Indeed, "it's possible that we go into recession... and that rates in the US go back to zero, and of course, in that situation gold's going to scream".
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