Huge money debt and liquidity injected, internal conflict in US (populism), rising of new great powe

May 24, 2022
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Huge money debt and liquidity injected, internal conflict in US (populism), rising of new great powers - the three things right now, according to Ray Dalio

Where are we in the monetary policy?

One man's debts are another man's financial assets. So they won't be able to raise interest rates to a high enough level to provide a real return to investors. 3% or 4% won't be enough to compensate for the inflation rate.

Paradigm shift. People believed everything that happened in the past 10 years, and then they get a surprise, and then they start to change.

Do I think cash is a safe asset, or bonds are a safe asset? Am I getting a real return? There's gonna be a supply-demand balance. The Fed, individuals, foreigners, and the US gov (to fund its deficit) are all selling/going to sell. Going to produce a squeeze because so much money was put out.

What's going to get you a real return? Real assets. Like the 70s.

Everybody's wrong. Everybody wants everything to go up. They keep giving you money. They want you to buy everything. They hype it. The world is holding all these financial assets. You're going to have an environment of negative real returns.

#Dalio
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<div><b>Huge money debt and liquidity injected, internal conflict in US (populism), rising of new great powers - the three things right now, according to Ray Dalio<br></b></div><div><br></div><div>Where are we in the monetary policy?</div><div><br></div><div>One man's debts are another man's financial assets. So they won't be able to raise interest rates to a high enough level to provide a real return to investors. 3% or 4% won't be enough to compensate for the inflation rate. <br></div><div> </div><div><br></div><div>Paradigm shift. People believed everything that happened in the past 10 years, and then they get a surprise, and then they start to change. <br></div><div><br></div><div>Do I think cash is a safe asset, or bonds are a safe asset? Am I getting a real return? There's gonna be a supply-demand balance. The Fed, individuals, foreigners, and the US gov (to fund its deficit) are all selling/going to sell. Going to produce a squeeze because so much money was put out.</div><div><br>What's going to get you a real return? Real assets. Like the 70s.</div><div><br></div><div>Everybody's wrong. Everybody wants everything to go up. They keep giving you money. They want you to buy everything. They hype it. The world is holding all these financial assets. You're going to have an environment of negative real returns. <br></div><div> </div><div><a href="http://landandseajournal.com/post/hashtag/Dalio"></a><a href="http://landandseajournal.com/post/hashtag/Dalio"><a href="http://landandseajournal.com/post/hashtag/Dalio">#Dalio</a></a><br></div>
Huge money debt and liquidity injected, internal conflict in US (populism), rising of new great powers - the three things right now, according to Ray Dalio

Where are we in the monetary policy?

One man's debts are another man's financial assets. So they won't be able to raise interest rates to a high enough level to provide a real return to investors. 3% or 4% won't be enough to compensate for the inflation rate.

Paradigm shift. People believed everything that happened in the past 10 years, and then they get a surprise, and then they start to change.

Do I think cash is a safe asset, or bonds are a safe asset? Am I getting a real return? There's gonna be a supply-demand balance. The Fed, individuals, foreigners, and the US gov (to fund its deficit) are all selling/going to sell. Going to produce a squeeze because so much money was put out.

What's going to get you a real return? Real assets. Like the 70s.

Everybody's wrong. Everybody wants everything to go up. They keep giving you money. They want you to buy everything. They hype it. The world is holding all these financial assets. You're going to have an environment of negative real returns.

#Dalio

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