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HomeTrading RoomAccording to Stanley Druckenmiller, the Government Must Reduce Entitlements and Quit Spending...

According to Stanley Druckenmiller, the Government Must Reduce Entitlements and Quit Spending Like “Drunk Sailors.”

Billionaire investor Stanley Druckenmiller stated that past failures by the federal government, such as wasteful spending and failing to issue debt at low rates, may ultimately force some difficult decisions to be made in the future, such as slashing Social Security.

Druckenmiller stated on CNBC’s “Squawk Box” on Wednesday, “We are spending like inebriated sailors.” Remember, before to COVID, federal government spending accounted for 20% of GDP. It is currently 25% of GDP. “Stop digging Stan if you’re in a hole,” my father once warned me.

In addition to the $106 billion the administration wants for Israel and Ukraine, the renowned investor, who currently oversees Duquesne Family Office, expressed disappointment that the White House is requesting an additional $56 billion in emergency spending for childcare programmes and disaster relief.

About $320 billion, or 23.2%, more than in fiscal 2022, the federal government’s September fiscal year deficit came in just short of $1.7 trillion. The incredible amount of debt held by the United States, which was close to $34 trillion, is increased by the budget deficit.

Nearly half of the federal budget is allocated to government entitlement programmes, therefore Druckenmiller hinted that further cuts may be necessary. Reducing Social Security benefits was his suggested action.

Source (CNBC)

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