Billionaire investor Stanley Druckenmiller proclaimed that the federal government has been demonstrating an imprudent approach to spending. "We are expending resources without restraint," Druckenmiller proclaimed Wednesday on CNBC's "Squawk Box."
Stanley Druckenmiller, the billionaire investor, noted that federal government expenditures have been irresponsible and the country has not borrowed at low interest rates, which will eventually lead to significant cutbacks such as downsizing Social Security. On Wednesday, Druckenmiller appeared on CNBC's "Squawk Box" and commented that "We are spending like drunken sailors" and that he was "admonished by his father to stop digging the hole". He then discussed the White House's desire to allocate an extra $56 billion for emergency relief and childcare, in addition to the $106 billion for Israel and Ukraine, which makes the US fiscal year's deficit near $1.7 trillion.
Druckenmiller believes that the US will have to reduce the size of its entitlements in the future and proposed Social Security benefits be cut, claiming "This generation has to take a cut". He believes that those who are currently receiving Social Security should remain at 100 cents on the dollar, but future seniors should get less, suggesting it "is not unreasonable for us to go to 85 or 90 cents on the dollar". Despite his assertion to lower government spending, he pointed out that it is important to provide support to Ukraine against the forces of Vladimir Putin and expressed his approval of the White House's $106 billion proposal. He concluded that the stock market will be difficult over the coming months and only wise investors will be rewarded.
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