The Lost Decade

02 Oct

The Lost Decade

“I don’t rule out something bad happening!” says legendary investor!

The Dow won’t be much higher in 10 years than it is today.  

That’s the opinion of billionaire investor Stanley Druckenmiller.  Stock, bond, and real estate bubbles are all popping, all having been inflated by the artificial creation of money and credit.  “All those factors that cause a bull market, they’re not only stopping, they’re reversing every one of them,” Druckenmiller said on CNBC. “We are in deep trouble.”

We have cited Druckenmiller from time to time over last few years among other big money players who were buying gold.   

In 2020, he was seeing 5 – 10 percent inflation ahead.  Here is what he was saying more than a year ago, in June 2021:

“I don’t think there has been a greater engine of inequality than the Federal Reserve Bank of the United States… so hearing the Chairman [Powell] talking about visiting homeless shelters is very rich indeed… everyone wealthy that I know is making fortunes” because “this guy [Powell] is printing money like there’s no tomorrow….…for the life of me I can’t understand why the left is so excited about money-printing when all the data shows that the people who benefit from money-printing are rich people.”

“The odds-on bet is that we’re going to have inflation and inflation is going to hurt poor people, again, a lot more than rich people. The asset bubble which [Powell] is blowing up into unbelievable proportions will bust before the inflation ever really manifests itself. That’s what happened in the housing bubble in 08/09. We never really got to the inflation because the asset bubble burst… not dis-similar to what happened in 1929.”

Stanley Drunkenmiller

As for the way things a being run by the administration today, Druckenmiller is severely critical of Biden for running down the Strategic Petroleum Reserve (for what looks to us like a cynical move employed for short-term electoral advantage).  And he chides Treasury secretary Janet Yellen for running down the treasury’s savings account at the same time she could have borrowed money for a mere one percent.

Oh, well.  She didn’t understand inflation either.

Say a prayer for America and buy gold!