When a billionaire speaks I usually take the time to listen. Unless they inherited their money, they are most likely both very intelligent and have a tremendous amount of experience in business and finance.
One of those people is Stanley Druckenmiller, whose hedge fund ran an average return of 30% annually until he recently decided to shut it down.
He speaks with CNBC regarding the ridiculous nature of the United States debt discussions as leaders spend endless hours debating an $85 billion sequester while the entire $16.6 trillion and growing Titanic moves rapidly toward the ice burg (see clock to the right for a current update).
He notes that if interest rates were to just normalize then it would add $500 billion annually to the U.S. deficit. If that were to happen the markets would realize the U.S. has a credit problem, which is exactly what is taking place in Europe, and rates would then spiral out of control.
He notes that everything was okay for Greece up until mid February 2010 and then in two weeks it was over. Coming soon to the United States and Japan.
