Politicians Lack Courage to Make Tough Choices: Julian Robertson

Legendary hedge fund manager Julian Robertson told CNBC Thursday that no American politician, whether Republican or Democrat, has the courage to make tough decisions that will boost the economy and set the country on the right track.

“We may have to do a little personal sacrifice and government sacrifice,” added Robertson, who spoke with CNBC following the midterm elections that gave the GOP a majority in the House of Representatives.

“I believe the American people would be willing to do that, if asked,” he said.

Robertson added, “I think one of the great problems in the world today is that the leaders don't ask. Right now, we are really in tough shape about Social Security. Can we pay for it? The answer is we've got to make some changes if we do pay for it. And everybody knows that, and everybody is unwilling to confront that.”

Robertson, the founder of investment company Tiger Management, was one of the first to predict the economic crisis. He forecast a "doozy of a recession" in an interview with CNBC in October 2007.

Now, more than three years laters after his prescient remark, Robertson has strong opinions about the Federal Reserve's latest move to jumpstart the struggling economy. Given the choice between foreign ownership of American debt and further quantitative easing, which the Fed announced on Wednesday, Robertson said he’d prefer debt be held by other countries.

Recently, the conservative Citizens Against Government Wasteproduced a commercial, which, in essence, said that American workers work for China because it owns so much US debt. Robertson said that he’s pro-China.

"I'm worried about anybody's ownership of American debt," he said. "In one sense, I'd rather them own the debt, and at least have the constraint of us having to pay the debt, rather than print the money."