Serial billionaire investor, Stanley Druckenmiller has lambasted the US Federal Reserve’s decision to continue influencing its economy negatively by grounding its short-term interest rates despite growing indices of an already resuscitating economy.
Druckenmiller recently took a hot swipe at Jerome Powell, the chairman of the United States Federal Reserve, for choosing to fetter America’s vibrant economy to crippling inflation which has since hovered around 2.6%, under the guise of a pandemic already established as less critical since the start of the vaccination program in January.
The owner of Duquesne Family Office, in an interview session with CNBC’s squawk box, stressed that the interference of the government in the economy, which started during the pandemic era, has simply gone on too long and is starting to backfire. With trillions of dollars in stimulus debt now cuffed to the wrist of over 300 million Americans, the nation stands the risk of shedding off more value and losing its priced position as a standard federal reserve for many countries.
“Already this is happening”, said Druckenmiller; ‘and there appears to be no solid replacement from any currency in the world – not the Euro and not even China, no thanks to her communist practices.’
Will Crypto Come To The Rescue?
While Powell in a recent 60-minutes interview stated that he doesn’t yet consider cryptocurrencies a threat to the planned digital dollar; Druckenmiller believes that down the line in a few months or a few years from now, ‘a crypto-derived ledger system’ would arise as the answer to the world’s federal reserve system crisis. Putting the world of cryptocurrency in a futuristic favorable light, He added that: “five or six years ago, I [Druckenmiller] said crypto is a solution in search of a problem’, and now ‘the problem has already been identified and it is Jerome Powell and the rest of the world’s Central Bankers”
Druckenmiller’s revelation about global central banks comes on the backdrop of the Governor of the Bank of England, Andrew Bailey’s negative declaration on cryptocurrencies, three days ago. Bailey was quoted as saying that ‘investors [in cryptocurrencies] must be prepared to suffer losses’ as ‘Bitcoin [and other cryptocurrencies] have no intrinsic value’
Despite growing synergies between crypto exchange companies and traditional financial institutions, there still hangs a nebula of resentment for the world of crypto, with many gerontocratic financial experts such as Bailey, Powell, and even Berkshire Hathaway’s VP, Charlie Munger, expressing their dislike for all activities of cryptocurrency and the successful run it has achieved.