Citadel's Ken Griffin Warns Of De-Globalization, Persistent Inflation Amid Global Unrest

Citadel founder Ken Griffin shared his apprehensions regarding the end of the global peace dividend. He warns of a shift towards de-globalization and persistent inflation in light of worldwide unrest and structural changes.

What Happened: Griffin, speaking at the Bloomberg New Economy Forum in Singapore, pointed to the recent conflicts in Russia-Ukraine and Israel-Hamas as indicators of the global peace dividend coming to an end.

The Citadel founder anticipates an increase in real and nominal rates which would affect the cost of funding the U.S. deficit. He expressed criticism over the government’s fiscal spending, stating that the country is "spending on the government level like a drunken sailor."

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Despite the existence of a strong jobs market, Griffin emphasized the unsustainable nature of the current fiscal deficit. He suggested that U.S. consumers feel “something is not quite right.”

Griffin cautioned against the potential economic fallout if the Federal Reserve continues to print money to avoid a default.

“The minute we start to print dollars just to deal with the possibility of a default, our economy’s going into a deep tailspin,” he warned.

Griffin also discussed the difficulties faced by Europe in sustaining its economy due to the war in Ukraine, which has disrupted its cheap energy source.

“There's many trends at play right now that are pushing us toward de-globalization,” he concluded.

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Ken Griffin… Image Via Flickr