Stanley Druckenmiller: Current Fed policy is totally inappropriate

Stanley Druckenmiller, CEO of Duquesne Family Office, and Christian Broda, managing director at Duquesne, argued in an op-ed for the Wall Street Journal that the Fed shouldn't be in emergency mode after the emergency has passed. They warn that the distortion of long-term interest rates is risky for the economy and for the Fed itself. Druckenmiller and Broda also say there are political pressures in the not-too-distant future that require the Fed to stop enabling fiscal and market excesses now. Druckenmiller joined "Squawk Box" on Tuesday to discuss. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
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[@alexsteven.m6414]

Recession is often the result of external factors, and it appears that the United States is losing its grip as a federal reserve currency. With a decreasing ability to control inflation and a reduction in stocks and oil trading, it seems that a new multilateral world order is on the horizon.

[@valeriepierre9778]

It's important to keep in mind that investing is a zero-sum game with both good and bad days. However, by spending and investing wisely and diversifying your holdings, you can minimize risks and maximize gains. Hiring a knowledgeable investment advisor with a wide range of options can help you achieve this and leave little room for regrets.

[@yolanderiche7476]

I just started a few months back, I'm going for long term, I'm still trying to wrap my head around it, who’s this advisor you work with?

[@edelineguillet2121]

@@yolanderiche7476 Credits Julia Ann Finnicum, to one of the best portfolio manager’s out there. She’s well known, you should look her up

[@bernisejedeon5888]

thanks for sharing this, I googled the advisor you mentioned and after going through her resume, I can tell she's a pro. I wrote her and I'm waiting on her reply

[@jfer982]

Finally!!!! Most people that come on these shows talk in circles, not really saying anything. Stanley has the balls to hammer it home. Thx bro.

[@neverusingthisagain2]

Everyone is just talking their own book. Be careful thinking any of this is advice

[@eddiegadsey5867]

@Eddie Fastbender liar

[@dimitri6827]

@Eddie Fastbender that`s the way they do it! Telling "the hell is coming" on TV while buying stocks! lol

[@mrkd4126]

@@neverusingthisagain2 Bingo - this guy does not invest how he talks . never has.

[@uncommonsense9973]

Peter Schiff has been saying that this is going to happen for years. Now this guy at WSJ wakes up and takes the hero's title at CNBC. Nevertheless, allowing a voice not representing vested interests of Wall Street crooks is huge progress for CNBC.

[@jpducati916]

learn more from a minute of Druckenmiller then from all CNBC hosts.

[@mrbobbydee9]

So true! I feel absolutely the same after watching this video.

[@herrwahnsinn4229]

How to still a billion dollars among other things this criminal shyst bucket has done.

[@McLaneFS]

What did you learn?

[@Seanmatthewanderson]

Wow, this video has aged incredibly well. Too bad Stan does not run the FED. He is probably too smart to take it though.

[@The135813]

He was so correct! Respect! 🙌

[@rashidkhan-xm4rl]

he made most of the money by timing market and risk management

[@owenphl1652]

A year from that interview, Dow is 29927 and S&P is 3666. Stanley you were absolutely right.

[@Discovery_and_Change]

Yup. I'm down -20% and just now finding out about Druckenmiller and this interview.

[@winonebud]

Someone is pointing out the obvious. It takes courage when you are as big as Druckenmiller.

[@tomlxyz]

You need courage when there's something to be afraid of. What should he be afraid of?

[@TapalKuda]

@@tomlxyz frikking illuminati

[@Discovery_and_Change]

Looking at the -20% drop in the stock market over the past 6 months, looks like Druckenmiller was right.

[@eddiegadsey5867]

I am surprised that CNBC allowed this guy to come on the show. When ARS does not have any comments it pretty much tells the story.

[@eddiegadsey5867]

@@altcoindaily8594 Thanks for joining KZbin yesterday!!

[@kingkang6877]

They must have a rule where the bigger the guest, the less overtalk allowed. I see that when Buffett is on but also Steve Eisman and Stanley D

[@martinrev8487]

I love how the producer was "unable" to put up the federal unfunded liabilities chart Stan requested, lol. I guess they didn't want to get in trouble.

[@bleacherz7503]

Some 20 yr old puts who does know the difference between the Philips curve and Philharmonic

[@paradiso4562]

Or maybe they didn't have the chart. Not everything is a conspiracy.

[@martinrev8487]

@@paradiso4562 He cited the chart number when requesting it. Clearly, he provided it for them. Druckenmiller is a big deal as a guest, so I'm sure they took the time to properly input the info he provided for the interview. I agree, not everything is a conspiracy, but this, at the very least looks very suspicious.

[@DJSerpent]

@@martinrev8487 Nah I deal with production too, and sometimes they don't clarify the charts or have the data because people like this can be fickle or unclear or ask for it last moment like here, or you know people make mistakes.

[@bobs182]

This is fortuitous with the failures this week of Silvergate, Silicon Valley, and First Republic banks.

[@Mdaddy4]

Druckenmiller is on point. Great analysis

[@altcoindaily8594]

T•h•a•n•k•s f•o•r W•a•t•c•h•i•n•g. T•o•d•a•y•s v•i•d•e•o. f•o•r m•o•r•e I•n•f•o o•r g•u•i•d•a•n•c•e W•H•A•T•S•A•P•P +©1°•6°•3°•0°•7°•0°•8°•6°•4•°7•°0 💖💙💖

[@angadsingh3267]

Straight shooter, spectacular clarity 👌🏻

[@ApriliaRacer14]

Crystal clear delivery.

[@nikalajohnny496]

*RICH PEOPLE PLAYS THE MONEY GAME TO WIN. POOR PEOPLE PLAYS THE MONEY GAME NOT TO LOSE. THE GOAL OF THE TRULY RICH PEOPLE IS TO HAVE MASSIVE WEALTH AND THE POOR SEES A SURPLUS AS AN OPPORTUNITY FOR CONSUMPTION INSTEAD OF INVESTING IT. CHANGE YOUR MINDSET AND DO WHAT THE RICH DOES, WHICH IS INVESTING, INVESTING AND INVESTING.*

[@investorsray1474]

You're right ma,

[@investorsray1474]

that's why I have to start forex trading 2months ago, now am making constant profit from it .

[@takshvianshi7277]

Natural, there’s a lot of math involved in forex trading,

[@takshvianshi7277]

but this is often presented in forms of daunting technical charts, indicators, patterns.

[@scottnicole2679]

Trading systems allow you to limit the factor of emotional influence on decision-making,

[@brendansmith7842]

Biden wants to go crazy on government spending at exactly the wrong time... Druckenmiller basically articulates my concerns i have had for months in a much better way.

[@kbram7363]

Biden or the fed?

[@SportsIncorporated]

Invaluable info. My portfolio was already 100% hard assets. Back to bed.

[@nafnaf0]

you can hedge too, check out Michael Burry's current picks (Google: "scion capital 13f"). TMV is x3 bear on long-term treasuries. This will explode in value if they raise rates

[@SportsIncorporated]

@@nafnaf0 TMV is a 3x leveraged ETF? If you're a newbie, with a leveraged ETF the math really works against you. If you're new to leveraged ETFs, study them before you invest in them.

[@sten260]

I own physical gold and silver, barrick gold stock and franco nevada stock, i think i'm good

[@SportsIncorporated]

You've taken the safe route. You'll be able to sleep at night. (expect them to go down with the market. I've found when the market goes down big time, it takes everybody.)

[@davidbarnett1631]

Stan is a class act. High quality person, tones of exp, and knowledge. He also keeps it real. CNBC for the most part gets fools on there show. NOT Stan

[@kurt9862]

The raise taxes. Boomers have enjoyed running up the debt for 40 years. Time to pay the bills.

[@shaunholm8428]

we all have enjoyed it

[@shaunholm8428]

fed ran up the bills we paid for it.

[@kurt9862]

@@shaunholm8428 the young are going to end up paying for it. Time to tax those who spent it. They want to die before it's due.

[@melvinhhcp3615]

@@kurt9862 Facts. The corporate boomers also have a problem with greed.

[@altcoindaily8594]

T•h•a•n•k•s f•o•r W•a•t•c•h•i•n•g. T•o•d•a•y•s v•i•d•e•o. f•o•r m•o•r•e I•n•f•o o•r g•u•i•d•a•n•c•e W•H•A•T•S•A•P•P +©1°•6°•3°•0°•7°•0°•8°•6°•4•°7•°0 💖💙💖

[@nohalfmeasures6]

Stan has an impressive track record with returns, they need more "bosses" to come on cnbc. I'm tired of the same paid analysts that come on pumping their losers and non-alpha ideas. Guys like Drukenmiller are too busy beating the S&P to come on cnbc every day like the rest lol.

[@papabear90]

People be asking questions like "can China overtake the US". The real question is, "can the US afford to maintain its hegemony any longer?"

[@rafb145]

Hypothetical nonsense, in reality no one in their right mind would want to live in china over us

[@r987p]

FED has gone nuts. Drunks running the bar

[@Mortum_Rex]

Sounds like a fun bar. Till the hangover sets in anyway lol

[@sang3Eta]

Money supply inflation last 12 months: Gold and Bitcoin 1.8% EU M1 Euros 12% UK M1 Pounds 22% US M1 Dollars 350%

[@zuluwarrior2888]

Heard the name in passing but first I have ever heard him speak. I'm impressed and concerned.

[@steve-mu1sj]

Too bad CNBC didn’t assign a journalist with talent to interview Stan

[@keithblain8763]

Melissa is the only CNBC journalist I trust.

[@kane2512]

@@keithblain8763 I like Wapner too. He puts people on blast.

[@srockriver]

I agree with you entirely !!

[@bs9343]

On the flipside Steve it was good that there wasn’t a journalist interrupting him constantly so we could hear this guy’s very helpful insight

[@ednan9]

Powell is a lawyer - not an economist

[@marekkolenda2777]

Unfortunately right

[@randythom]

thank goodness for an honest analysis. This feels exactly correct out here in flyover country

[@TheMayoDon123]

Aged well

[@peterjna12]

Inflation is out of control. Fed needs to raise rates and let the markets correct.

[@ADG-pl7ur]

@beswick1111 lets hope so

[@Respectedevil1]

I am also in cash

[@ross4452]

@beswick1111 Can the U.S. Government handle a rate hike like that though? I think the U.S. Federal Gov't would be insolvent if they raise rates. The Fed will have no choice but to cap interest rates but buying more and more bonds from the Treasury so the US gov't can continue making their interest payments on their debt. We are set up for inflation either way based on my view. They've painted themselves into a corner.

[@jefflopes8810]

I am glad too see the viewers recognize that CNBC (part of NBC) is completely in the liberal tank, and will do anything to support Biden. Druckenmiller is a breath of freshair and reality

[@Hawking1969]

thoughtful courageous macroanalysis

[@Bornagainhotrods]

When Drunkenmiller speaks, people need to listen

[@georgezipp8783]

He sounds like a very WISE MAN . Thanks for the Q & A . Well done no fluff .

[@joaov4739]

Couldn't have more clarity. Awesome arguments and data.

[@watersport86]

Finally someone is honest on CNBC.

[@shifandaruwalla2327]

Can you imagine the country being dependent on an environment in which tech stocks outperform for its own financial stability? Not good at all

[@daffertube]

That's how AI takes over. Tech grows and humans die out. Birthrates can't replace the current population.

[@davidbarnett1631]

Jeff G, Stan D, Peter S, Harry D, who else did I forget. All these guys are my go too people to listen too. As far as I'm concerned these people know what's going on.

[@jenspettereikeland3700]

Druckenmiller as president !!! Lokk how right he was now 2 years later!!!

[@pa9121]

Kind of pathetic that CNBC can't get a chart that the guest is requesting up on the screen

[@WhittyPics]

They have to keep the bubble alive. NO WAY can they allow the rich to take any kind of haircut.

[@shootermacgavin1]

I have a feeling everyone is going to take a severe haircut

[@parkerbohnn]

@@shootermacgavin1 It was written in the bible the rich will become the new poor. Soon we'll see this when everything implodes and the rich are the only ones left with money to pay the taxes.

[@sandikennelly1357]

The Rich have a haircut coming if Biden gets his way by redistribution of wealth. Robin Hood will crash our economy just as Trump predicted.

[@MrHansBattle]

The Druck telling like it is! Love it...

[@enteradj]

Japanification?

[@SWW978]

USSRfication

[@Stoneface_]

Lol it Will never happen😁

[@adriansegura6352]

Nope more like Argentina. See Japan is a creditor nation. We are a debter nation

[@chrisnamaste3572]

No. Japan has always had big trade surpluses and a positive current account--- like Europe usually has in aggregate. Those idiots at the Fed playing with fire. Then again Powell is a Wall Street lawyer appointed by Trump and not an economist. Do you trust lawyers?

[@russg7697]

Californication?

[@Blitznstitch2]

Oh when you give people who have no money...money...they will spend it. Duh!

[@giovannipantorno884]

Ron Baron did say these billionaires come on TV sound like bears, and he asked how tf did they get rich??? He's right

[@lukaradojevic7195]

Short the market?puts?assets that benefit from volatility?you can make money in downturns also,and you have many diffetent asset classes and financial instruments and strategies to trade and invest in, sp 500 and bitcoin is not only asset class in the universe,despite what cnbc tell you.go buy silver or uranium or copper mining stocks.learn to trade commodities or options..

[@LibertarianRF]

@@lukaradojevic7195 dude you're sounding too smart.. as liberals were supposed to be like oh let's blame the rich for everything oh my God .. who cares of the government spent 10 trillion dollars in illegal wars.. let's go after bezos he's got like billions or something

[@yummymommy2275]

Retail could also be on the rise because ppl are spending less on outings, entertainment, transportation, and physical wellness.

[@ApriliaRacer14]

This guy nails it.

[@mikesawyer1336]

For every move the fed makes the other side says it was totally inappropriate. So many opinions. In the 90s inflation was low but interest rates were higher. Much higher. Now rates are stupid low but everyone is in fear of inflation. These are called cycles. If you're the investor caught holding the bag.. too bad for you but ups and downs are normal

[@Mike_ICP]

Love the way Stan looks to have taken this Personal at the begining of the interview with that jacket snap. He probably had the fire as a younger stallion.

[@win_cent]

No one ventures to talk about that publicly. Thanks Stan for the precious thoughts

[@daffertube]

XMR to the moon

[@stephenklare1796]

Raise rates . At 5% I could live off interest payments

[@bleacherz7503]

Yep, know you know who is paying for QE. Savers. Emergency Funds. New families and of course the poor

[@iamhudsdent2759]

I'm in the same boat, Stephen. But Druckenmiller is saying that 5% will be worth very little.

[@snippletrap]

And then interest payments become 30% of GDP, as Druckenmiller pointed out.

[@bleacherz7503]

@@snippletrap limit rates to individual investors .

[@parkerbohnn]

I live off the interest payments at a shade under 2 percent. Revenue Canada just gets less money in tax from me. I'm not the only loser with these absurdly low interest rates.

[@timeforachange-i3s]

No country should by our debt, treasuries, or anything related to the dollar.

[@paulb2315]

He won't be invited back anytime soon. Speaking the truth isn't in vogue at the moment. Truth doesn't help stoke the stock market.

[@THEFLYBOYWAY]

He is reading the chart wrong ,, all the losses that occurred in the gap are still here they didn't just disappear so any overage after that is just covering the losses from the miss.. 🤦🏾‍♂️

[@justinmartinez3332]

Yeah it’s fun spending on credit cards until the payment becomes due. How much are our payments on the interest?... 30% of GDP. 🤯

[@Witnessmoo]

Everybody loves a bit of doom saying! The bottom line is that our productive capacity now outstrips our demand... no matter how much money they throw into the system.

[@fhowland]

He’s 100% right.

[@AngeloBonaveraArt]

Don't forget the abundance of retail traders flooding the market on Robinhood and Webull. They raised the general level of investors in the equities and they're here to stay.

[@Hopeful-passenger]

I am sorry but i hate it when the announcer acts so smug when he says that 85%of trade is done in dollars. The DXY is a sham. Debt to gdp in EU is over 80% , over 200% in japan. The EUR and JPY are the largest weights when calculating the DXY, and both the EU and Japan is pretty much bankrupt. Look at AUD, KRW, SGD... currencies of countries with sound balance sheets and you can see that the are up 10~30% compared to the USD.

[@christinesavino]

Not to mention bubble like corporate debt and looming hyperinflation.

[@timmiet47321]

Smart man. He speaks about what he knows unlike many others especially those in the media.

[@mattpagel2328]

He tanked the market. Bless the boomers lol

[@frenchfrymontana3564]

🔥🔥🔥Bruh, Stan Druckenmiller could be a character on The Simpsons💯💯💯

[@kirancromie1772]

All the assent price stimulation and maladaptive value and asset distrotion it s directly due to the federal reserve. The covid-19 stimulus isn't the problem. It only passed 6weeks ago.

[@MrBlueDevil93]

They have been doing stimulus longer than that. And, for years, Quantitative Easing, (eg. printing money out of thin air, with no more work performed) has been the policy of the US govt and the Fed. Now, just skim a little along the way. Though in reality the Fed refunds the majority of interest they charge to the Treasury, you have to remember they print the electronic digits out of thin air. They are allowed to do so by the Congress. Try it yourself and you get arrested for counterfeiting. Great game --- for them --- not the little people who pay for it. You honestly could run it from one iphone.

[@andrewtaylor2095]

i agree. I do not want to be holding dollars

[@method341]

You have to keep dancing until the music stops. But don't be the last one dancing.

[@kennethli8]

Stan have been repeating these lines for over 10 years. I do agree with him the Fed at times are playing with fire, but he is definitely wrong that the Fed Government cannot pay its debt back. The US Federal debt is denominated in US currency and the US Treasury is the only entity that can print US Dollar because we are no longer on the gold standard.

[@patrickbateman783]

Yes they can print money to pay back the debt but you money will be worthless.

[@efanshel]

I love Stanley... I listen to his brilliant observations. I try to do some work and form my own conclusions...Then the big questions:So what? How do make money or avoid a loss with this new info? Investors and traders focus on what will be, not what should be... Today's price is tomorrow's headline....

[@esp4yu]

Nominal Retail Sales (if inclusive of Tariffs) may suggest the figure is less than 3% (Percentage of Retail Sales is Reduced although it showed an upward trend). This does not suggest a rise in economic activity, especially during CoVid-19 period.

[@TheTangofrog]

Can we run a full video without Shepard Smith's mug? Please?

[@zarathustravideo]

Thank you very much!

[@siddharthkaneria1]

Stanley Druckenmiller at his usual best

[@ibrahimcharanek2300]

Love 💘 this man

[@Rnankn]

Like so many others, he is ignoring several long term trends that might not appear in the economic data but are bigger threats than Co-vid. Toxic inequality and middle class radicalization, deindustrialization and automation, demographic decline and pensions, record debt but most crucially the immediate need to decarbonize the economy. This last one is considerably more serious than what is reflected in media. It is a gargantuan task to initiate and implement new civilization energy production and distribution, with agriculture and industry and construction and transportation all needing to be transformed. So if the Fed slows economic activity it worsens all these and undermines necessary goals.

[@stuff2008]

Thst is because of retail inflation.

[@juanok2775]

He missed completely the valuation of the dollar. All time high now

[@jaym9846]

By the DIP. Get the CHIP. FED vill RIP.

[@BrendanMetcalfe]

Thanks for sharing

[@TrevForPresident]

Why is the Fed buying billions in mortgage backed assets when the housing market is booming?

[@brian91145]

so they can own EVERYTHING!

[@mattmccracken1768]

Stan is the man. No doubt.

[@briangracey7393]

Thank you Gregory, you are my motivational speaker who keeps me focused on the big picture.

[@shredbtc]

A year later and the dollar feels stronger than ever - crazy world

[@vajraloka1]

What's an "asset purchase " ? Who buys what?

[@williamjenkins7562]

Yes! The great transformation of wealth finally revealed by Stanley himself but the transfer only occurred from one type of investment to another. So if you don't own assets then the great transformation will happen without you even having a clue.

[@mrmoonlit7108]

Heyyy it's the hissing reporter! 😃

[@altcoindaily8594]

T•h•a•n•k•s f•o•r W•a•t•c•h•i•n•g. T•o•d•a•y•s v•i•d•e•o. f•o•r m•o•r•e I•n•f•o o•r g•u•i•d•a•n•c•e W•H•A•T•S•A•P•P +©1°•6°•3°•0°•7°•0°•8°•6°•4•°7•°0 💖💙💖

[@emilhaferflocken9401]

It's a harrowing and incisive view. Scary stuff. I want to make a grammar remark, even if it's unimportant in comparison. @CNBC, your graphic guy actually wrote "Treasurys," with a "y," as the plural of "Treasury"? Lame, dudes.

[@wolffo999]

pay attention to how CNBC does not show the charts druckenmiller asks for....

[@dp26385]

I’m interested in observing what we can learn from this.

[@gianniprocida3332]

Cnbc can't handle that. Excellent point about the dollar

[@solweinberg4339]

Thank you Peter Schiff for opening my eyes.

[@angadsingh3267]

Legendary

[@michigandersea3485]

Better get your fixed rate mortgage as soon as possible, if you're considering buying a house. It'll be fun paying 3% when the going rate is in the double digits.

[@drizztdourdeen9390]

Fun Fact: In German lang "drucken" means to print

[@jaym9846]

FED: Hold my beer.

[@seandavis2520]

We are like a Legacy Airline that will not adjust..

[@Gauge1LiveSteam]

End stimulus, QE and ZIRP. Let the market sort itself out.

[@Elgringo2180]

Correct me if I’m wrong .... due to the weakening dollar, this tech sell off because of high interest is unjustified?

[@vishalsaroha1489]

Neil kashkari and team are the same team that handled the subprime crisis.Has nothing changed. The utility of no over-ripe actions has long oulived their utility. Saves whom now ?

[@altcoindaily8594]

T•h•a•n•k•s f•o•r W•a•t•c•h•i•n•g. T•o•d•a•y•s v•i•d•e•o. f•o•r m•o•r•e I•n•f•o o•r g•u•i•d•a•n•c•e W•H•A•T•S•A•P•P +©1°•6°•3°•0°•7°•0°•8°•6°•4•°7•°0 💖💙💖

[@samuellambert8919]

i think the retail sales chart is pretty obvious, and has been for a while. Have had a somewhat less clear but similar to Druckenmillers view since July 2020. Good for the ones that made a lot of money. I've never believed a thing of it.

[@sumitomoO0O]

Make this guy the FED chair...JPow only helps the rich

[@ISpitHotFiyaa]

It's time for some serious reforms at the Fed. The unrestrained money-printing has to end. We need to go back to the pre-1983 CPI formula. What's going on with house prices right now is straight up nuts but the current CPI formula will never pick that up.