Hedge fund legend Stanley Druckenmiller on exploding debt interest.
Two short highlight clips from Druckenmiller’s rare interview last week on CNBC
WSJ Editorial By Druckenmiller…
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Here’s a chart of interest paid on the U.S. national debt.
Interestingly, we have already paid $150 billion for fiscal 2013.
….
Necessary preconditions for hyperinflation are a quasi-bankrupt government whose debt is monetized by a central bank with insufficient assets. One way or another, owning physical gold is the safest and most effective way of insuring against hyperinflation.
Two short highlight clips from Druckenmiller’s rare interview last week on CNBC
WSJ Editorial By Druckenmiller…
**
Here’s a chart of interest paid on the U.S. national debt.
Interestingly, we have already paid $150 billion for fiscal 2013.
….
Central Banks Cannot Create Wealth, Only Liquidity
However, central banks can only create liquidity, not wealth. If printing money were equivalent to creating wealth, then mankind would not have to get up early on Monday morning. Only a solvent central bank can halt hyperinflation. The longer governments run large deficits, the longer central banks continue to monetize them, and the longer their balance sheets grow, the higher the potential for enormous losses and thus hyperinflation.Necessary preconditions for hyperinflation are a quasi-bankrupt government whose debt is monetized by a central bank with insufficient assets. One way or another, owning physical gold is the safest and most effective way of insuring against hyperinflation.
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