Goldman Sachs interviews Stanley Druckenmiller

YouTube/Tony Pasquariello-GoldmanSachs

graphic image showing cycles of the moon with question "Why diversify"
“The CARES Act added trillions in fiscal stimulus. How big was it? In three months in 2020, we increased the deficit more than the past five recessions combined (1973, 1975, 1982, the early 90s’, the dotcom bust and the GFC). The Fed in six weeks bought more treasuries than in 10 years under Bernanke/Yellen. Corporate borrowing, which almost always goes down in a recession, which had already increased from $6 trillion to $10 trillion going into the crisis due to the Fed’s free-money policies, went up $400 billion. Putting that in perspective, it went down by $500 billion during the GFC.”

USAGOLD note:  In this interview, Druckenmiller lays out a solid argument for gold ownership without ever mentioning it specifically as one of his holdings. However, he does acknowledge commodities in general as a large and important part of his strategy. He adds that he has a “very, very short dollar position.”  We would be surprised to learn that gold and silver were not part of his holdings.


GFC = Great Financial Crisis


Repost from 2-8-2021

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