Stanley Druckenmiller rose to fame after co-creating a $1 billion profit with George Soros in 1992 when he managed the Quantum Fund.
On that occasion, the duo “broke the Bank of England” with a large short position in the local currency, the pound sterling. Such a transaction is one of the most famous in history and the date became known as Black Wednesday.
Now Druckenmiller is betting that the dollar will be the next state currency to experience a major devaluation.
The billionaire is not alone, Robert Kiyosaki has already said the USD is becoming toilet paper and former President Donald Trump noted that the US currency is no longer the world standard.
Stanley Druckenmiller talks about his short position on the dollar
Stanley Druckenmiller’s lines were spoken last week at an event in Oslo, Norway’s capital, and shared by the Financial Times. In short, the billionaire showed confidence in his position.
“One area I’m comfortable with is that I’m short on the US dollar. Currency trends usually last two or three years. We had a bigger increase.”
The billionaire praised the Fed’s stance on raising interest rates and said not gambling in favor of the dollar was probably the biggest mistake of his career. However, Druckenmiller now believes that the US will cut those interest rates to avoid an economic downturn, which will reverse this trend.
The former Quantum Fund manager is by no means the only one with this idea. However, each player’s strategy varies. Others, for example, are positioning early in Bitcoin, expecting the asset to break new records shortly after the Fed’s monetary policy changes – which may take a while, but it will happen.
Billionaire also cited President Lula
Last month, Kim Dotcom, founder of the Megaupload website, had already commented on the end of the dollar empire, citing Lula’s rules. Now Stanley Druckenmiller is once again quoting the Brazilian president as he claims that the USD has become a weapon.
“And you have Lula running around asking why we should trade with the US dollar, and he’s right.”
Finally, the consequences of the possible fall of the largest fiat currency in the world are still unknown. However, investors are already looking for opportunities to profit from this crisis, either with shorts or with Bitcoin.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
