Ray Dalio, the founder of Bridgewater Associates, warned that it is possible to return to the future money system in the US. Dalio said that the US dollar has been supported by gold in the past, that currencies in history have gone through the depreciation cycles and that they fixed their money again. Finance expert, this process is not certain in the near future, but stressed that it can not be ignored.
Gold standard for the dollar
Dalio, in a statement on social media, the currencies often lost value over time due to excessive printing, argued. He recalled that in similar periods in the past, governments preferred to pay their debts with their worthless currencies, but the society has lost its confidence in the system and returned to the under -gold system.
“The US dollar was formerly under gold and it is not unlikely to switch to such a system in the future. History shows us that these cycles are repeating. Is this pattern happens, it is difficult to say something for sure. But in the possibility.” – Ray Dalio
In the near future, Dalio suggested that US President Donald Trump is trying to reduce the value of the dollar in order to increase the administration of US debt. This approach creates contrast with the stable and low inflation targets of the US Federal Bank President Jerome Powell. Dalio, high debt and credit levels of the most frequently used method to reduce interest rates and to reduce the value of money, he added.
“As I have explained earlier, when it comes to excessive borrowing and credit, the classical solution is to reduce the interest rate and to reduce the value of money. This advantage for the debtors has a negative consequence for creditors. While Trump wants it, Powell stands against it.” – Ray Dalio
What should investors do?
Dalio proposed to diversify a portfolio against possible currency depreciation. Approximately 15 %of investments against the possibility of worthlessness are gold or Bitcoin $114,988.95 He said it would make sense to keep in such assets. Finance specialist, such measures may work in protecting personal assets, he said.
Experts and investors on the subject emphasize the importance of global economic dynamics while taking into account Dalio’s statements. While monetary policies and inflation debates continue in the US, investors are trying to set strategy according to different scenarios.
The discussion of the possibility of transition to the money system -based monetary system brings questions about how the US will follow a monetary policy in the future. Dalio’s statements lead to different assessments between economic decision -makers and investors.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
