Soros' Business Partner: We've Triggered A Financial Collapse
The former hedge fund manager predicted that the upcoming financial crisis
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We are heading towards a new financial crisis that could bring more trouble than the previous one in 2008, according to George Soros' former portfolio manager, Stan Druckenmiller.
Druckenmiller, an American investor, worked closely with Soros for years betting against currencies and ultimately predicting the economic collapse in 2008.
The former hedge fund manager predicted that the upcoming financial crisis would much worse than the previous one, admitting that we are too blame.
"You can make a case that we're going to have a financial crisis bigger than the last one, because all they did was triple down on what, in my opinion, caused it," he said.
"When you can borrow money at zero, of course, debt is going to explode," the investor pointed out.
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According to Sputnik: Besides, Soros' former associates-in-arms criticized Donald Trump's trade and sanctions policies, reflecting the president's rocking-the-boat plan to be destructive.
"When you start just shooting it all over the place — and you're now shooting it at Canada, at Europe, here or there — that's a lot different than shooting at Iran or Russia," he said, adding that if Trump or a "very hard left" is elected in 2020, the US may find itself in a heap of trouble by 2024.
Actually, Druckenmiller has entered a choir of other well-known investors who have recently shown interests over the looming financial crisis, Ivan Danilov, a Russian economist and Sputnik contributor, highlighted in a recent op-ed.
"In recent months, several very influential figures on Wall Street have spoken on the same issue and presented no less gloomy prognoses to the public," the economist wrote.
He referred to Ken Griffin, founder and CEO of hedge fund Citadel, who informed his investors about "dark clouds" on the horizon in February 2018. Citadel's chief voiced concerns over rising inflation and "a heightened level of geopolitical risk."
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In June 2018, yet another noticeable American financier, Jeffrey Gundlach, highlighted that that the US federal debt was "exploding."
"That could lead to a real fiscal solvency problem, eventually," Gundlach warned.
The national debt problem and the federal budget deficit problems were also discussed by the Congressional Budget Office (CBO) and the US Government Accountability Office (GAO), which also signaled their deep concerns this year.
For its part, the Wall Street Journal released an article eloquently titled "Get Ready for the Next Financial Crisis," on September 14, on the 10th anniversary of the Lehman Brothers bankruptcy.
While some market players warn about the looming storm, others are modestly preparing for it, Danilov noted, citing Russia, India and China's increasing purchase of gold.
The economist pointed out that even Poland, a country not affected by sanctions or trade wars, has abruptly commenced buying the precious metal for the first time in several decades.
"The situation resembles that of Titanic," Danilov said.
"An orchestra is playing on the deck and passengers are still having fun, while the collision with an iceberg is already inevitable. At this time, the most prudent are already hoisting out the boats and fighting for places in them."
