Druckenmiller: Many positives for the economy don't show up in GDP



you and Kevin warsh had been watching the Fed and commenting on the Fed for for a long time it's probably too much shelf I mean I have so many questions about this and I'm thinking we only have an hour that's that was what just ran through my head listen you know it but is a is the Fed still isn't there the law of diminishing returns for what they're able to do and we hit that yet I don't think looks like we haven't because they've we got a pause which bounced us in December and then we got something more recently where there might be a cut and it worked again is it going to always work just because it makes stocks more more valuable no one day I won't work we proved in 2008 at some point you start pushing on us on a string I'll say this I don't understand the the Fed's monetary framework at all I grew up in an era with Volcker and Greenspan both where monetary policy was primarily used for counter cyclical and when the market excuse me when the economy started running too hot after a period they would lean against it and when it looked like things were softening and rolling over they would lean against that now we have decimal point inflation targets like it's Armageddon if it's one point four three two instead of one point six five we're worried about inflation expectations five or tier in ten years down the road we have a two percent two point zero excuse me inflation target that if we don't meet it it's Armageddon and I have trouble with that whole the the preciseness of it and the attention to it as you know Joe we're in well you may not agree with me but I think we're in one of the biggest productivity inflection booms since the late 1800s I am very confident that it's not being measured in real GDP I'm also very confident I couldn't measure it so don't take American up today but I know that we have all these free products out there that don't measure in GDP just a couple of examples somebody at MIT did a study and said the average American would pay eighteen thousand dollars a year to use the Google search engine I know I'd pay more by the way but here's here's just one little anecdote so in 2010 Americans took I think or globally took 300 billion pictures okay this year we took two and a half trillion pictures okay and the pictures this year on the phone in your pocket are better than the pictures you were taking with a Kodak camera eight years ago and if you look at GDP accounting all right there is no accounting and value for those pictures it's done nothing for GDP in fact you could argue since we used to go in and pay 50 cents per picture when we want to have them developed that added GDP and that's no longer in there so that it now literally subtracts from GDP and I could give you a million other example you




Comments
  1. There are two green rooms: one for guests one for CNBC bobble heads. The bobble heads have coffee for drinking and glue for sniffing…

  2. The average american would pay $18,000 a year for google?! What?! This guy is completely detached from reality…we need to get rid of these billionaire’s money…they are using it for power over people and have zero understanding of the real world…the best thing these people could have done with their money was spend it foolishly…waste it on yachts, cars etc…instead they narcissistically believe they are kings and are going to change the world, which is the most selfish and dangerous thing they could do…trump included…

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