Billionaire hedge fund manager Paul Tudor Jones says that the US is heading towards financial ruin if the government doesn’t get its spending under control.

In a new interview on CNBC, the Tudor Investment Corporation founder says that either large reductions in government expenditures or the raising of taxes is necessary to reign in the US’ fiscal deficits.

However, Jones believes that presidential candidates Donald Trump and Kamala Harris are “least suited for the job ahead of them,” and likely unprepared or unwilling to make the needed adjustments, which could include slashing 20% of the federal workforce.

“We are going to be broke really quickly unless we get serious about dealing with our spending issues. I don’t know if we’ll be able to cut spending that much…

I’m saying that just to get us to the point where we stabilize debt-to-GDP to where it is right now, here’s what you need to do, you need to let the Trump tax cuts expire, that’s $390 billion. You need to raise the payroll tax on every single person by 1%, that’s another big slug… We’re clearly going to have a period of contraction which hopefully – that’s why I say, it’s going to be really important for the Fed to offset the fiscal contraction that’s going to come.”

Jones adds that he “doesn’t want any of this,” but that the US needs to get serious about where it is fiscally.

With his bleak outlook on the US financial situation, Jones says that “all roads lead to inflation” – creating a strong case for gold and Bitcoin (BTC).

“I’m long gold, I’m long bitcoin, I think commodities are so ridiculously so under-owned, so I’m long commodities. I think most young people find their inflation hedges via the Nasdaq, that’s also been great. I probably have some basket of gold, Bitcoin, commodities and Nasdaq, something like that. And I own zero fixed income. If I had my cash, it would be very short term.”

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