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The US Federal Reserve and the rise of “zombie companies” are driving investors to struggle to hedge against inflation using bitcoin and gold.
That’s according to Mark Yusko, founder and CEO of investment firm Morgan Creek Capital Management, who spoke to CNBC Fast Money host Melissa Lee on Thursday.
Yusko targeted zombie companies (those that need bailouts in times of financial stress to stay in operation), calling them a “Ponzi financial scheme” and saying that their inability to repay debt, insolvency or restructuring meant “l ‘only choice’ left for the The Federal Reserve and other authorities are devaluing the currency.
Which is “exactly” what the US central bank did, along with the central banks of Europe and Japan. “They will continue to do so,” he said.
As a result, according to Yusko, bitcoin and gold are doing “extremely well”. “Before the eyes of the people, you are seeing your wealth stolen through inflation.”
“Money is devalued. Over the past three years, inventories have increased by about 6% per year, not quite that great, “he said.” But if denominated in gold instead of dollars, they drop 44%; if denominated in bitcoin it’s definitely worse. . “
