Hedge fund manager Stanley Druckenmiller believes the overly easy monetary policies by global central banks will have disastrous consequences: “The way you create deflation is you create an asset bubble. If I was ‘Darth Vader’ of the financial world and decided I’m going to do this nasty thing and create deflation, I would do exactly what the central banks are doing now, misallocate resources [with low interest rates], create an asset bubble and then deal with the consequences down the road.” Here is a direct video link.
Druckenmiller: Central banks are financial world’s ‘Darth Vader’ from CNBC.Here is a second longer segment.
Billionaire investor Druckenmiller: Fed’s 2-percent inflation target needs to go from CNBC.
Footnote: while I think it is entirely appropriate to note the intense energy consumed in mining Bitcoin and question the utility, an intelligent comparison on this point would need to quantify the energy and water usage, as well as environmental costs, of mining, minting and management of government issued and precious metal bullion currencies, as well. While no one seems to be quoting those figures–they would be huge no doubt.
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