The United States economy is headed for a “hard landing” and will slump into an imminent recession soon, according to billionaire Stanley Druckenmiller. He added that it won’t be “worse” than the 2008 economic crisis.

Druckenmiller is the former lead portfolio manager of George Soros’ Quantum Fund.

Druckenmiller said to expect a “modest decline” and not a full-blown economic collapse. “I am not predicting something worse than 2008,” he said during the 2023 Sohn Investment Conference on Tuesday, according to Bloomberg. “It’s just naive not to be open-minded to something really, really bad happening.”

Druckenmiller pointed to retail sales, which dropped 1% in March compared to February, as one sign of economic weakness.

He also cited the current turmoil in the regional banking sector, fueled by the sudden collapse of Silicon Valley Bank and Signature Bank in March, and JPMorgan’s takeover of the troubled First Republic Bank this month. -Business Insider

Druckenmiller additionally suggested that the impending slowdown or recession could see unemployment in the U.S. spike above 5%. It would also mean corporate profits will tumble 20% or more, and the number of bankruptcies will surge. On the other hand, he predicted that bargains would materialize in markets, and advised investors to have cash ready to deploy.

He also blamed the U.S. ruling class for spending too much fiat currency and argued it will have no choice but to cut social programs. Moreover, he criticized the Federal Reserve for not raising rates after the COVID-19 scamdemic threat faded.

“We basically wasted all our bullets,” he said. Druckenmiller also recently described the U.S.’s fiscal policy over the past decade as a “horror movie,” and compared the potential fallout from overspending to a “200-foot tsunami.”

Prepare For The New System: A “Crisis of Epic Proportions” Is Coming

In response to the crippling inflation the ruling class instigated, the Federal Reserve has hiked rates to upwards of 5%. The increases have put pressure on middle-class consumers and businesses, reignited recession fears, and stoked concerns that lenders could pull back and cause a credit crunch.