The U.S. Federal Reserve and the rise of “zombie companies” is prompting investors scramble 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 with CNBC’s host Melissa Lee on Thursday.
Yusko took aim at zombie companies (those that need bailouts at times of financial stress to stay in operation), calling them a “Ponzi finance scheme” and saying their inability to repay debt, default or restructure meant the “only choice” left for the Federal Reserve and other authorities is to devalue the currency.
That it is “exactly” what the U.S. central bank has been doing, alongside the central banks of Europe and Japan. “They’re going to continue to do that,” he said.