Dollar might have dominated other currencies in the previous years, but recently it has started to lose power due to the US government flooding the economy with unnecessary liquidity.
Former CEO of Duquesne Family Office, Stanley Druckenmiller, even said it would lose its reserve status over the next 15 years.
Apparently, both fiscal and monetary stimulus are putting dollar at risk, not to mention that in order to pay off future debt obligations, the government will have to monetize its debt. Such has dire consequences to the dollar, as the currency could lose its edge, as well as its reserve status.
In any case, Druckenmiller praised the efforts of the Federal Reserve in stabilizing the global economy. He noted that recovery is beyond limits, especially for the US economy.
He also pointed out the growing demand for US bonds, as a result of which 60% of debt issuance has already been bought by the Fed.
In that regard, Druckenmiller said: "Don't expect gold to reclaim its place on the global stage." He added that no one trusts the Chinese yuan, while the euro is a complete mess.
As for cryptocurrencies, he warned that nothing is certain, especially on what the market will look like in 15 years.
