Druckenmiller Warns Rising US Debt Will Crowd Out Innovation

(Bloomberg) — Billionaire investor Stan Druckenmiller said rising government debt levels will curb the ability of the US to spend on technological innovation and even defense, hurting its leadership position in the world.

“What are we doing?” the founder of Duquesne Family Office said on a CNBC program on Wednesday. “We are digging a hole for ourselves.”

Druckenmiller, who managed money for George Soros for more than a decade, has joined a number of prominent investors in sounding the alarm about the world’s largest economy lately and has expressed concerns about swelling government debt. 

However, he defended US backing for Ukraine’s war efforts, saying if Russia gains the upper hand in that conflict, Washington faces the prospect of plowing a lot more money that it currently does.

He also doubled down on his earlier comments blasting Treasury Secretary Janet Yellen for not taking advantage of near-zero interest rates during the pandemic by selling more longer-term bonds.

Last week, Druckenmiller said at a conference that he’s loaded up on bullish bets by buying two-year Treasury notes on growing concerns about the US economy. 

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