Paul Tudor Jones Warns "Disastrous Market Mania" Will End In "Revolution, Taxes, Or War"

Tyler Durden's picture

"This gap between the 1% and the rest of America, and between the US and the rest of the world, cannot and will not persist," warns renowned trader Paul Tudor Jones during his recent TED Talks speech, as he addressed the question - can capital be just? Hoping to expand the "narrow definitions of capitalism," that threaten the underpinnings of society, Tudor Jones exclaims, "we're in the middle of a disastrous market mania," adding "one of worst of my life." Perhaps most ominously, he concludes, historically this ends "by revolution, higher taxes or wars. None are on my bucket list."


As TED blog reports,

Can capital be just? As a firm believer in capitalism and the free market, Paul Tudor Jones II believes that it can be. Tudor is the founder of the Tudor Investment Corporation and the Tudor Group, which trade in the fixed-income, equity, currency and commodity markets. He thinks it is time to expand the “narrow definitions of capitalism” that threaten the underpinnings of our society and develop a new model for corporate profit that includes justness and responsibility.


It’s a good time for companies: in the US, corporate revenues are at their highest point in 40 years. The problem, Tudor points out, is that as profit margins grow, so does income inequality. And income inequality is closely linked to lower life expectancy, literacy and math proficiency, infant mortality, homicides, imprisonment, teenage births, trust among ourselves, obesity, and, finally, social mobility. In these measures, the US is off the charts.



“This gap between the 1 percent and the rest of America, and between the US and the rest of the world, cannot and will not persist,” says the investor.


“Historically, these kinds of gaps get closed in one of three ways: by revolution, higher taxes or wars. None are on my bucket list.”


Tudor proposes a fourth way: just corporate behavior. He formed Just Capital, a not-for-profit that aims to increase justness in companies. It all starts with defining “justness” — to do this, he is asking the public for input. As it stands, there is no universal standard monitoring company behavior. Tudor and his team will conduct annual national surveys in the US, polling individuals on their top priorities, be it job creation, inventing healthy products or being eco-friendly. Just Capital will release these results annually – keep an eye out for the first survey results this September.



Ultimately, Tudor hopes, the free market will take hold and reward the companies that are the most just. “Capitalism has driven just about every great innovation that has made our world a more prosperous, comfortable and inspiring place to live. But capitalism has to be based on justice and morality…and never more so than today with economic divisions large and growing.”


This is not an argument against progress, Tudor emphasizes. “I want that electric car, or the jet packs that we all thought we’d have by now.” But he’s hoping that increased wealth will bring with it a stronger sense of corporate responsibility. “When we begin to put justness on par with profits, we get the most valuable thing in the world. We get back our humanity.”

*  *  *

As one attendee noted, PTJ received a standing ovation...


Full video below:


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PartysOver's picture

Yes, yes, and yes.  But it is still down the road before all the above happen.

Beam Me Up Scotty's picture

It's not the 1%, its the .01%.  Married couples making $250k/year who are "allegedly" in the "top 1%" are NOT living like Warren Buffet and Bill Gates.  Just wanted to clarify that point.

Manthong's picture

Plato, anyone?

Pladizow's picture

Blah, Blah, Blah!

How many boards will this place him on?

What info will he be privy to?


flacon's picture

Taxes are not the answer because only the productive class pay taxes. The lower 80% don't pay taxes and the upper 80% don't pay taxes. It's only if you are independent, working in a non-government job and trying to make your life better FOR YOURSELF --> only those people are taxable, but those people are becoming less and less each passing day. 



walküre's picture

Exactly why they will raise taxes. The productive class has no choice but to play by their rules. The uberwealthy can use every loop hole under the sun. And really, does it make a dent in their pocket to pay $100 million in taxes when they have several billions?

nope-1004's picture

"Just corporate behavior"?  Give me a break.  Sounds to me like "just defecation", or teaching a dog exactly where to crap everytime.  Animal instincts are animal instincts, and greed is probably the most powerful.  In fact, Paul stated that all sin stems but from one emotion:  Greed.

This sounds way too simple and idealistic.  War is inevitable IMO.


maskone909's picture

TED Conference Exposed As Scientology-Style Cult


kind of scary.  made me look at ted a little more carefully.  they still do have some really good pieces tho.

Buckaroo Banzai's picture

TED Conference seems like a progressive, agenda-driven social programming tool. As traditional social programming tools like Time magazine, NYT, network news are in their death throes, The Fabian Socialists are starting to adapt to the realities of the internet age.

Lore's picture

I agree. This is simplistically-naive, altruistic-sounding ideological claptrap, a diversion, like the recent "divestment" talk among fund managers and like most of the "sustainability" prattle marketed as part of Agenda 21.  We're supposed to believe that the same "God's work" control freaks who create all the imbalances can be depended on to clean up their own mess?  Sorry, it never works that way.  Con men simply move on to the next con, leaving a trail of rape, pillage and destruction behind them.  You really want to create a "just" environment for capital formation and investment?  CUT THROUGH THE GREAT LIES AND TAKE POWER AWAY FROM PSYCHOPATHS. 

Political Ponerology:  A Science on the Nature of Evil Adjusted for Political Purposes

TruthInSunshine's picture

Here's your latest Yellen balance sheet:

News Headline Summary

US Fed balance sheet liabilities increased to USD 4.458trl in the latest week from USD 4.451trl

Yaaaay! 5 trillion is not far away!

Thirst Mutilator's picture

What's the OFF balance sheet?... Or do I need a bloody secret decoder penis ring to find out?

TruthInSunshine's picture

Yeah, they definitely keep 2 sets of books.

whotookmyalias's picture

ELP said it best back in the 1970's.  "tax the rich, feed the poor, till the rich ain't rich no more".


And if you don't know who or what an ELP is, for God's sake google it.  Some of you must live in labs.

chunga's picture

I think that was Ten Years After bro.

CapnJackDaniel's picture

Doom Doomity Doom. While I think you're right and there will be a rapid correction in the newar future, in the meantime here's Kate Upton dancing in a bikini for like, 5 minutes (You're welcome.)

About as likely to change the ineveitable outcome as any discussion around any of this cluster fuck we call a market system, but much, much easier to watch. 

Richard Chesler's picture

Pretty naive really.

Most people will do absolutely nothing.

If anything, they'll go after each other first, rather than the real Shylocks.


WhyWait's picture

War, Revolution, Taxes or the Tooth Fairy.

I vote for the Tooth Fairy.

If the Tooth Fairy's not real, I'll take Taxes.

I'm a great fan of other folks' wars and revolutions, won't shy away if there's no choice, but they can end badly.

On the other hand, the high taxes on the rich from the '50's through '70's worked out pretty well all in all.  

Beam Me Up Scotty's picture

You mean the high taxes the rich didn't really pay because the tax code was loaded with loopholes??? Kinda like the tax code is now. But it's only the uber rich who benefit.

Oh regional Indian's picture

A better TEDx talk, mine ;-)


Am on the fence with TED. Very programming oriented. Very limit creating, yet's a strange beast for sure. Tremendous feel good factor, but what else?

flacon's picture

When he says: "'capitalism' has to be based on 'justice'" you know you are listening to a COMMUNIST. First of all capitalism doesn't have a CENTRALLY PLANNED ECONOMY, and second of all capitalism is JUST in and of itself, there is no "based on justice" clause. WE DON'T HAVE CAPITALISM and that's the PROBLEM. PERIOD. 


"JUSTICE (in their meaning of the word "social justice") = CENTRAL PLANNING" which IS THE ANTITHESIS of CAPITALISM. FUCK THESE ORWELLIAN PEOPLE AND THEIR SPEECH ABOUT "JUSTICE" They don;'t even know the meaning of the word. Justice is when all students who took out loans and when all mortgage holders who took out loans ARE FORCED TO REPAY THEIR DEBTS. 

GMadScientist's picture

Replace justice with an income distribution that doesn't have mind-bending kurtosis, a modicum of class mobility, and methods to handle the externalities it has done a damn poor job of handling to date.


WhyWait's picture

That's another problem.  You'd really rather have war or revolution? 

We'll probably get them anyway, I'm expecting both, not sure in which order. Am planning on surviving but honestly will be surprised if I do.

But give me an option I'll still take taxes.

As for the billionaires having a change of heart, that's the bomb! If praying for it would make it happen I'd get religion.

I could say I'll believe it when I see it, but the truth is I won't believe it when I see it.  Maybe one or two of them, that would help a lot, but history is not kind to that notion, and their idea of a change of heart is fatally tainted by their notion that they somehow deserve to have power over us and make our choices for us.

Consider the cases of Bill Gates and George Soros ...

WhyWait's picture

Question: WHY did this piece of soft-minded wishful thinking get 230,000 hits? 

Oh, I get it.  Paul Tudor Jones is going to save us!  Silly me!

GMadScientist's picture

Throw him into the volcano!!!


GMadScientist's picture

And the corporations; look at the portion of the tax base shouldered by individuals now and how much corporations used to pay once upon a time and wonder at how we haven't had a revolution already.

willwork4food's picture

+1 for the vid and taking my mind off the shitstorm. Damn she's hot.

NidStyles's picture

I don't get it, what's the big deal about her? She's just another white girl chasing clown dicks.

Welder's picture

What a waste ! She shold be ashamed of dancing on monkey music.

whotookmyalias's picture

I think that was Ten Years After bro.


I stand corrected.

Swede32's picture

I've always wondered about that song.  "till the rich ain't rich no more"? Why not "tax the rich, feed the poor, 'til there are no hungry poor"? Must be a different set of priorities...

CH1's picture

You want "just"?

Then measure government contracts. Those are ALL paid for with stolen money.

Thirst Mutilator's picture

Yes CH1 ~ I totally agree with you...


Everything... & I mean E-V-E-R-Y-T-H-I-N-G that [reasons itself] to be 'THE eCONomy' these days...


- & whereby 'THE ECONOMY' is always fronted as the poison pill to hold the world hostage...

- & whereby the 'TANKS IN THE STREETS' threat is used as the poison pill

- & whereby TPTB [in the nodes of power ~ who were PLACED there], make the expedient choice

- & whereby, they're serving their own instinctual needs [by threat of DEATH, 'Kennedy style', or reward style such as what the Clintons & Obama enjoy]

- & whereby those who OFFER such choice are the money merchants

- & wherby the money merchants CAME TO BE money merchants, not by toil & sweat, but INSTEAD by coercion, blackmail, deception, & mass murder

- & whereby the same money merchants constructed a media empire [controlled by their own ilk], to divert attention away from the atrocities

- & whereby the same money merchants corrupted a legal system [so as to avoid prosecution]

- & whereby, as result of ALL OF THE ABOVE, 'GOVERNMENT' became the biggest elephant in the room [even though it PRODUCES NOTHING except war, death, & inequality]

- & whereby, naturally, there became a growing need for government CONTRACT SERVICE PROVIDERS

- & whereby the 'first bid' service providers tended to go towards 'ilk' that tended to PLAY BALL

- & whereby PLAYING BALL meant to IGNORE the atrocities [because making a sheckel was more important]...

- & whereby, after all the possible wealth stolen from hardworking 'folks' whose concept wasn't to PLAY BALL [like those previously mentioned], but instead worked at creating something meaningful, only to have it stolen from them.

- & whereby when that dynamic finally ended, & there were no pennies left to pick up in front of the inevitable steamroller

- & whereby the money [PRINTING] merchants recognized this fact and, without other recourse, began to monetize wealth [which, for a period of time, actually materialized MORE PENNIES to pick up in front of the aforementioned inevitable steamroller]


Yeah, so, you're right... It's all STOLEN MONEY...


You, my friend, during your posting history on ZH, have PROVEN yourself to be a staunch advocate of the MONEY STEALERS... So pat yourself on the back and kindly retire to your poo flinging hobby...

GMadScientist's picture

"You take the pen and I'll take the sword, you can write some shit, til I cut your fucking head off."

Things that go bump's picture

Psychopaths give up nothing. That's one of their defining characteristics. Taking power away would have to be done by force and not many have the stomach for it (except psychopaths). On the other hand, psychopaths would happily sacrifice millions even billions of lives if that was the price that had to be paid to retain what they've taken, and they wouldn't lose any sleep over it. Believe me, those who hold the reins of power will kill us all before they share what they hold or let us go.

outamyeffinway's picture

Was it justice when Jones worked out with Goldman how they would rip off clients with MBS's? What a dick. Him and Nick and the rest of the <1%'ers. Pitchforks and Torches, bitchez!

Againstthelie's picture

"Capitalism must be just."

It would be too funny, if it wasn't so tragic.

Compound interest debt based money creates the necessity of exponential growth and is the driving force behind the fact, that everything is being measured as capability to make profit. GROWTH. GROWTH. GROWTH.

Capitalism = money makes money.

Why should a company that takes care of elderly need to growth? Why should the fattest nation consume more and more?

Just another try to avoid talking about the main problem: exponential growth on a limited planet does not work and that compound interest is the most evil concept ever created.

chunga's picture

I'm not sure it's capitalism's fault, but it's pretty hard to be "just" when the fastest growing commodity is fraud.

striped-pad's picture

You're right that exponential growth on a limited planet does not work.

But does compound interest with debt-based money require exponential growth? I took that very seriously when I first watched "Money As Debt", but I explored the idea for a long time and found it was not true, because banks spend their interest instead of accumulating it. See my counter-example.

Harbanger's picture

Taxation, war and then revolution, that's the sequence.

OLD YELLER's picture

Or it could be just another way for the alphabetes (FBI, NSA, GESTAPO, ect.) to draw opposition into the open, and then? Heinz, take them away! We'll let the good Doctor interrogate them!

Just kidding. It can't happen here.

teslaberry's picture

it's true but every once in a while a ted talk comes out that they don't really like, ---even ted sometimes allows local decision makers some independence that corporate tedquarters regrets. 


you will know this when the talk is not made public or censored. there are a hisotry of a few talks censored, and perhaps they should have been. but some should not. and i believe you will see this more frequently.

FuzzyDunlop21's picture

Fuck TED talks. Every one of these assholes in the audience is gonna go home and BTFD. 

jaxville's picture

You nailed that square on the head Buckaroo.  It's getting a little scary how many apologists for the status quo there are on those talks.  

Ace006's picture

Exactly. (Responding to Buckeroo Banzai's Fabian socialists idea below.)

Whenever anyone starts talking about income inequality I figure I'd better put my hand on my wallet, hide my 8-track tapes in a safe location, and have numerous assault rifles close at hand.

I'm surprised this prophet, seer, and prognostisizer didn't claim that income inequality causes low gas mileage and poor fashion sense.

This jasper is just itching to proclaim "From each according to his stock options, to each according to his vote" but settles for this "justness" nonsense. As determined by him, natch?

I can't wait to read about the results of surveys that ask "the people" what should be done with "excess profits." Redistribute them as our democratically elected representatives determine, I'm thinking. With input from impartial panels of highly, highly educated people.

This reminds me of something that we've seen a lot of before.

mc225's picture

yeah, ted is corny. hipsters love it though.

caustixoid's picture

Vancouver TEDtalk last year cost something like $6000 to attend wherein the Beamer-driving class could pay to feel like society's thought leaders.

Personally I prefer Oniontalks like "Loudness Equals Power":

Conor's picture

I did a Tedx and had a good experience, but yeah, it's a bit smug.

Manthong's picture

“narrow definitions of capitalism” 

If he was honest about the situation he would be lambasting the wide presence of fascism and totalitarianism rather than denigrating capitalism by implying that there is any of it left in this centrally manipulated economy.