- Ray Dalio, the retired founder of Bridgewater Associates, says that stocks are expensive and central banks are suffering significant losses.
- Dalio points out that due to these losses, many central banks are operating with “negative equity,” and this is especially true in the United Kingdom.
- When the traditional monetary system collapses, all fiat currencies worldwide, especially for ordinary citizens, will start losing their value and purchasing power.
Ray Dalio, retired founder of Bridgewater Associates, explains how the US will enter political debates: Bitcoin could be critical in the future!
Ray Dalio Discusses the Issues in the US
Ray Dalio, the retired founder of Bridgewater Associates, says that stocks are expensive, and central banks are suffering significant losses while Bitcoin continues to hold its strength. Ray Dalio gave an interview on Fox Business last Friday and made several negative comments about stocks and central banks.
Dalio emphasized that due to losses, many central banks are operating with “negative equity,” and he mentioned that this was the case in the United Kingdom. He stated that the rules required the bank to get capital from the government.
According to Dalio, this situation meant that the UK government would need to find more money, which would equate to 2% of GDP and ultimately bring the budget deficit down to less than 2%, pushing the UK government into more borrowing (or printing money). He suggested that the same situation might not be as significant in the US, but if it becomes a political issue, things could change.
Regarding the current political disputes that are paralyzing Washington, Dalio said, “the rules are in jeopardy,” and he suggested that the US could enter into a “big political conflict” next year as the US economy worsens, and geopolitical tensions with countries like China and Russia become more critical.
US Dollar and Bitcoin
When the traditional monetary system collapses, all fiat currencies worldwide, especially for ordinary citizens, will start losing their value and purchasing power. Fiat currencies in developing countries will experience the worst since they are in free fall against the dollar, and the dollar itself is being printed on the hyperinflation path as it attempts to keep its head above water against a massive debt of 33 trillion dollars, not to mention adding many trillions of unfunded obligations on top of that.
In such a world, an asset that stores value outside of this system has incredible value for those looking to preserve their wealth from the rapid failure of fiat currencies.
Bitcoin is such an asset that offers this value. Institutions are not foolish, and as they start moving their assets into it, they will carry the torch. It would be beneficial for individual investors to do the same or at least educate themselves about what Bitcoin can offer.
