Julian Robertson is concerned, you should be too.

There is so much constant noise in markets that it sometimes hard to develop a clear picture of what’s most likely to transpire. Tiger Management Chairman, Julian Robertson, is among the people whose long term views rightly rise above the sea of noise.

In this CNBC interview, embedded below, Robertson views inflation as a huge risk and a second leg down in the market a question of when not if. Here are a few of my notes.

• In for some real rough sledding. The recession is temporarily over, but haven’t addressed many of our [US] problems and borrowing so much money can’t possibly pay it back unless China and Japan buy US bonds.
• Terrible position that present and past leadership has put US in. If Chinese and Japanese don’t buy US debt it’s Armageddon, the US is totally dependent on those countries.
• Can grow and save way out it, but leadership does not have the guts to tell people to slow down and that it’s going to take a while to put the economy back on track.
• Inflation is the risk, it could wipe out so many people.
• Fed preaching their own book when they say deflation is the risk.
• If Chinese and Japanese stop buying US bonds could see 15-20% interest rates. Crazy that the US is now so dependent.
• Believes Chinese do not want to stop buying US bonds, but circumstances could force them to stop.
• Japan could be forced to sell US bonds, which is worse than simply stop buying.
• They are buying short term debt, US can’t sell long term. History shows that people who borrow short term get burnt.
• We are going to pay the piper, it’s a question of when not if. Interest rates are going to go up putting breaks on the economy and earnings will go down.
• Looking at shorting copper again.
• If you wanted to divest US dollars and had to put your money somewhere he suggests Norway as richest country with safest currency.
• Stimulate is a synonym for spend and borrow and we need to break that cycle.
• New Zealand is beautiful and will always be beautiful. [Clearly a very smart guy!]

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3. Getting Down From My Pulpit