Billionaire Ray Dalio is “deeply concerned” about inflation

Briefly:

  • The head of the world’s largest hedge fund is “extremely concerned” about inflation
  • He called for stopping the printing of money in the United States and paying attention to the reduction in the consumptive capacity of assets
  • According to the billionaire, investors need to earn at least as much as the real price of their savings fell in order to neutralize inflation

On Monday, 22 December, Ray Dalio, head of the world’s largest hedge fund Bridgewater Associates, gave an extensive interview. In it, he touched upon the topic of inflation, cryptocurrencies and the current situation in the bond market.

Earlier we have already touched upon the topic of economic problems in the United States. The federal government has acknowledged that inflation will drag on. To cope with the situation, the Fed had to abandon the bond buyback strategy, and this affected the BTC rate.

This situation is not unique to the United States. As of the end of November, the UK inflation rate has reached 13 – summer maximum. Prices rose for all basic necessities and gasoline.

“I am seriously concerned about this. And I’ll explain why. The fact is that the amount of funds and loans put into the budget and those that will go into it are completely different things, ”Dalio answered to the interviewer’s question about how he relates to the current situation.

The billionaire also noted the constant decline in the purchasing power of cash:

“Some people think they are getting rich as their assets rise in value. But they are wrong. Take a look at purchasing power, it is shrinking. And those with cash savings will be the hardest hit. ”

Inflation is literally“ eating up ”American wealth, Dalio said. The nominal value of assets is increasing, while the real is decreasing. There is a feeling that capital is increasing, but this is not the case.

The billionaire shares the position of the President of El Salvador on this issue. He also called on the US federal government to “stop the money printing press.”

According to Dalio, in order to neutralize the effect of inflation, investors need to earn at least as much as the decrease in the real value of their assets.

The billionaire also touched on the topic of cryptocurrencies. In his opinion, BTC is a “gold analogue” for young people and can act as a hedge asset. Dalio acknowledged that digital currencies have their advantages and need to be considered. You can read more about what inflation is and how it affects the economy, as well as private investors, in our extensive article on this topic.

Dima is a managing editor and news writer. 5 years in content management. He makes sure that only high-quality information, truthful news and interesting articles get to the site. You can contact him through @IncryptedNewsBot.

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