Stan Druckenmiller Gives Crisis Warning, by Antoine Gara in Forbes. Famed investor Stan Druckenmiller was George Soros main man when together they “broke the Bank of England,” earning a $1 billion profit by shorting the pound in 1992.

Eleven years ago, Druckenmiller warned the Sohn audience of then-Federal Reserve chair Alan Greenspan’s blunders in inflating an epic mortgage bubble, which was sure to crash.

On Wednesday, he said the bubble inflated by former chair Ben Bernanke and current chairwoman Janet Yellen is many magnitudes worse. The Fed is using low interest rates to ease borrowing costs and smooth over growing problems in the global economy. According to Druckenmiller, this radical Central Bank accommodation is leading to unproductive investment, particularly in China, an engine of global demand. …

Druckenmiller believes cheap money is borrowing from future growth and will backfire spectacularly. ”While policy makers have no endgame, markets do,” he said.

Druckenmiller is increasingly nervous about risk assets and recommended investors take refuge in gold.

He says equities are expensive, the stock market is at a turning point, and the economy is struggling under too much debt, which has been wasted on unproductive investments.