FeaturedIn The NewsMoney & The Economy

‘We’re In Deep Trouble’: Billionaire Investor Says US Is Spiraling Toward A Debt Crisis


A prominent billionaire investor said the U.S. faces a debt crisis during a discussion at CNBC’s Delivering Alpha conference.

“We’re — we’re in deep trouble. So everything I said at those colleges is worse in terms of the metrics, except for one thing. And what I miscalculated was I didn’t calculate zero rates, I used 4 percent rates,” Stanley Druckenmiller, who founded Duquesne Capital Management and ran it until August 2010. “But the only thing Donald Trump and Hillary Clinton agreed on in 2016 was don’t cut Social Security, don’t cut entitlements. So nothing was done.”

The national debt is more than $30.9 trillion and is 124.9% of America’s gross domestic product (GDP), according to UsDebtClock.org. The U.S. has unfunded liabilities for Social Security and Medicare of more than $171 trillion, UsDebtClock.org reported.



“Joe Biden has excoriated Rick Scott, because he dared to mention that maybe we shouldn’t be increasing senior paids. But if you look at — at the reversal, I just talked about and use the CBO estimate, which is rates at 3.8 percent, which I think frankly, is pretty optimistic, given all the things we talked about, by 2027, the interest expense alone on the debt, eats all health care spending,” Druckenmiller said. “By 2047 it eats all discretionary spending. So we’re now getting into fiscal dominance. By the way, by ‘49 it eats all Social Security. We’re getting to the point now where the interest expense on the debt is so high, that is going to eat up our ability to basically service the next generation and I’m not even sure about the current one.”

“The U.S. government is deeply in debt. While measuring the country’s fiscal position in trillions of dollars or percentage points of GDP may seem abstract, the adverse consequences of continuing on our current trajectory are real,” the Committee for a Responsible Federal Budget said in a 2019 paper.

Other experts, like Nouriel “Dr. Doom” Roubini, have predicted that the U.S. is headed for a long recession, noting that with the recession, there was a chance that stocks could drop significantly. BlackRock President Rob Kapito said in a March speech that inflation could cause shortages of labor and products.

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

Support Conservative Daily News with a small donation via Paypal or credit card that will go towards supporting the news and commentary you've come to appreciate.

Related Articles

One Comment

  1. No matter what the Democrats are telling you we are already in a Recession and it’s not unlikely that a Depression may be coming. Why? Because the only government response to our massive inflation and uncontrolled government spending (money printing) is to rapidly increase interest rates which they are now doing. If you don’t remember then go look up mortgage rates in the 1970’s that were as much a 17% under Carter. As we head that way, the now robust housing market will be crushed along with all industries, the jobs, and manufacturing that support it and the economy will crater.
    Rick Scott’s has published an “11 point plan to save America” and every one should Google it and read it. It is genius in its common sense and simplicity. It protects our Border, our families, our schools, our biology. It proposes to balance the Federal budget and cut the Federal workforce by 25% over the next five years. It prevents former politicians from becoming lobbyists and from passing laws for us that don’t apply to them! It is similar to Gingrich’s “Contract for America” of years past, only better. That McConnell is against it is shameful and outs him as the Rhino he truly is and every Republican should be embracing this plan as a roadmap to take back America. Send it to your Senators and Representatives and share it with anyone who wants to see solutions to the horrible mess that this country is in.

Back to top button