Citadel founder Ken Griffin said the world is facing structural changes, challenged by geopolitical risks and restructuring of supply chains.
“The peace dividend is clearly at the end of the road,” Griffin said at the Bloomberg New Economy Forum on Thursday in Singapore. “Now we are talking about de-globalization, re-routing supply chains. Countries are much more sensitive to what we want to produce domestically, so we are not exposed to global trade.”
Griffin added that US fiscal spending needs to be put in order, as the country is “spending like a drunken sailor.”
He warned the current fiscal deficit is unsustainable. Even though the country’s job market remains relatively strong, US consumers realize deep down that “something is not quite right,” he said.
The Federal Reserve can continue printing money to avoid a default, but “the economic consequences would be devastating,” he said.
“The minute we start to print dollars just to deal with the possibility of a default, our economy’s in a tailspin,” Griffin said.
The New Economy Forum is being organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News.
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