"You've got the geopolitical uncertainty... the United States is probably in its weakest fiscal position since certainly World War II with debt-to-GDP at 122%."
The high-profile investor said the Israel-Hamas war brought on the most threatening and challenging geopolitical environment, which would create a significant risk-off market environment.
Meanwhile, a surge in interest rates has deteriorated the fiscal health of the U.S. as the country continues to take on more debt.
"As interest costs go up in the United States, you get in this vicious circle, where higher interest rates cause higher funding costs, cause higher debt issuance, which cause further bond liquidation, which cause higher rates, which put us in an untenable fiscal position," Jones said.
Jones is also the chairman of nonprofit Just Capital, which ranks public U.S. companies based on social and environmental metrics.
Persons:
Paul Tudor Jones, Jones, You've, hasn't
Organizations:
Tudor Investment, U.S
Locations:
U.S, United States, Israel, Iran