Famous investor Griffin: high inflation could last decades

The famous billionaire Ken Griffin, founder of the investment company Citadel, warned about inflation and economic problems.

The world faces unrest and structural changes that are moving it away from globalization and could lead to high underlying inflation that could last for decades, Griffin said.

Speaking at the Bloomberg New Economy Forum in Singapore today, Griffin said, referring to the Russia-Ukraine and Israel-Palestine wars: “The peace dividend is clearly at the end of the road. “We will probably see higher real and nominal interest rates,” she said.

DEBT WARNING

The famous billionaire said this would have effects on the US debt and said the US failed to account for high interest rates in excessive government spending that created a $33 trillion deficit.

Griffin added that it is necessary to get US fiscal spending in order because the country is “spending like a drunken sailor” and warned that the current fiscal deficit is unsustainable.

Griffin also said: “The Federal Reserve can continue printing money to avoid a default. But the economic consequences would be devastating. “The moment we start printing dollars just to deal with the possibility of a default, our economy will enter a deep vicious cycle,” he said.

Griffin said the war in Ukraine means Europe, which has lost its source of cheap energy, is struggling to figure out how to sustain its economy, adding: “There are a lot of trends right now that are pushing us away from globalization.” . “.