Billionaire Ray Dalio; debt will kill the US
Ray Dalio projected a new world order with China soaring and the US declining.
Dalio discussed his latest book, “The Changing World Order,” on Monday’s “Sway” program. He claimed debt, inflation, internal turmoil, and a growing China threaten American prosperity.
“Ray Dalio built his wealth betting on the future,” Kara Swisher said. “Now it appears Dalio is wagering that global influence is changing, with China rising and the US declining.
“I expect China to compete… They have everything. They are installing AI there. So it will be a hub for a lot of that. I expect a lot of it to happen in America “added he
The billionaire’s financial ties to China have been challenged. In 2021, Dalio linked Chinese human rights abuses to American bigotry and questioned if he should continuously invest in America.
Working in China, Dalio says he “helped them create their financial system and had non-political relations.” Accusing him of being “in China’s pocket” is “McCarthyism.”
Ray Dalioalso expressed concern about inflation and the nation’s debt, saying that the debt is already above $30 trillion.
“The buildup of tremendous sums of debt and the monetization of that [creating money]” generally precedes the collapse of empires, he added.
“Every country in history has created and monetized debt to increase purchasing power when money is scarce. And that matters. It has an inflationary effect, as we see now. It affects the value of money “stated he
According to the left-wing “modern monetary theory,” the government may spend money indefinitely if it borrows and prints it in its currency.
“The US can never run out of currency because it can print them,” Swisher remarked.
“You don’t want to store your riches in something that you can’t buy,” he said. “Cash is thought to be secure, yet it lost purchasing value by nearly 7% last year. And they’re rapidly losing purchasing power.”
Dalio went on, “They sell debt when they realize it, and they are now realizing it. That implies the central bank either issues more money to make up for the people leaving, which causes higher inflation, or they don’t print any money at all. A debt crisis occurs when they don’t print money.”
Dalio also addressed the country’s internal divisions, calling them “irreconcilable”.
“With the biggest wealth discrepancy. We have the biggest wage disparity. And we have the widest political chasms since “stated he “So, democracy has ceased to function for us. And we have right-wing populism and left-wing populism. Irreconcilable divisions in ways I have never seen before.”