Renowned billionaire hedge fund manager Stanley Druckenmiller said he sees cryptocurrencies “playing a big role in the renaissance because people will no longer trust central banks.” He added that he would be “stunned” if the U.S. is not in recession next year.
Stanley Druckenmiller.16}
No one trusts central banks.
Billionaire investor Stanley Druckenmiller discussed the U.S. economy and cryptocurrencies in an interview at the CNBC Delivering Alpha conference on Wednesday. Druckenmiller is chairman and CEO of Duquesne Family Offices LLC. Previously, he was managing director of Soros Fund Management, where he was the general manager of a fund with peak assets worth $22 billion. His personal net worth is currently $6.4 billion, according to the Forbes Billionaires list.
Referring to news of the Bank of England’s purchase of 65 billion pounds of British bonds, he said that if “things get really bad,” other central banks will do the same in the next couple of years.
I could see cryptocurrencies having a big role in the renaissance because people just aren’t going to trust central banks.
However, he clarified that he does not own Bitcoin or any other cryptocurrency, “It is tough for me to own something like that with the central bank tightening.” He added.
Focusing on the U.S. economy, Druckenmiller stressed that the Federal Reserve is “taking incredible risks.” He emphasized that “they are taking a huge gamble by threatening 40 years of credit with inflation and blowing the wildest asset bubble I have ever seen,” and asserted.
The Fed was wrong. They made a big mistake.
“If you recall, the Fed did $2 trillion of QE after vaccine confirmation.” The billionaires explained.” At the same time, their partners in crime, the administration, had done more fiscal stimulus – again, after the vaccine, after it became clear that emergency measures were not needed – than we did in the whole great financial crisis.”
Druckenmiller continued.” If you look at what the Fed did, the radical bet they took to raise inflation 30 basis points from 1.7 to 2 is, to me, a kind of risk/reward bet … and they lost.”
He elaborated further.
On whether a recession will occur in the U.S., Druckenmiller said.
Let me say this. If we don’t have a recession in 23 years, I will be stunned. I don’t know when, but definitely by the end of ’23.
In a subsequent interview with Bloomberg on Wednesday, the CEO of the Duquesne Family Office reiterated that Federal Reserve policymakers are “putting themselves, the country, and most importantly the people of the country in a terrible situation.” He warned that “inflation is a killer,” noting that “stable prices are necessary to maximize employment over the long term.”
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