Stanley Druckenmiller: Bernanke Running The Most Inappropriate Monetary Policy In History. The Commodity Situation Is Deadly, And The Aussie Dollar Will Come Down Hard. I See Storm Coming, Bigger Than 2008

Stanley Druckenmiller – “Bernanke Running The Most Inappropriate Monetary Policy In History”

When three hedge fund titans all explain in words so simple a financial media channel morning show host can grasp that there is nothing behind this rally but smoke, mirrors, and a bearded academic, it seems more than a few people start to pay attention. Following Paul Singer and Kyle Bass [9], Stanley Druckenmiller “loves the market short-term, but hates it long-term,” since Bernanke is “running the most inappropriate monetary policy in history.” He warns, for it is a warning, that “markets will melt up,” until the Fed is forced to tighten. He recommends shorting the AUD, and sees the commodity super-cycle as over, because, “supply-demand… is deadly.” He also likes Google but not “tech companies that engage in financial engineering under advice of hedge fund managers.”

Stan Druckenmiller:

• Decade of fast commodity demand is over
• China leverage and misallocation of resources similar to US 2005-2008.
• Bernanke running the “most inappropriate monetary policy” given circumstances in history
• No bear market until the Fed changes monetary policy’
• *DRUCKENMILLER: BERNANKE RUNNING INNAPROPRIATE MONETARY POLICY
• *DRUCKENMILLER: OVER SHORT-TERM, I EXPECT A ‘MELT UP’
• *DRUCKENMILLER: MARKETS ARE GOING TO GO UP, NOT DOWN
• Sees Australian Dollar Coming Down ‘Hard’
• Avoid commodity currencies in general
• He likes Google; does not like other tech companies which engage in financial engineering under advice of hedge fund managers

DRUCKENMILLER: The Commodity Situation Is Deadly, And The Aussie Dollar Will Come Down Hard

Druckenmiller says the supply and demand situation in commodities is deadly (various commodity markets are dealing with supply gluts even as global growth is slowing), and he recommends shorting “commodity currencies” – like the Australian and Canadian dollars.
The last two years, Druckenmiller says, have shown that the commodity supercycle is over.

“The commodity supercycle is over. It is not a correction. Own currencies that benefit from LOWER commodities.” – Druckenmiller #irasohn

— Downtown Josh Brown (@ReformedBroker) May 8, 2013

Druckenmiller says short Australia on commodity bust. “we think australian dollar will come down and come down hard” #sohn2013 #nyp
— Kaja Whitehouse (@kajawhitehouse) May 8, 2013

Druckenmiller #sohn2013: “Supply-demand situation for commodities is deadly.”
— John Carney (@carney) May 8, 2013

Druckenmiller: I See Storm Coming, Bigger Than 2008

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