Ray Dalio sees dollar crisis about two years away

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These two quotes are from a few years ago.
Sounds like the IMF is full of doom and gloomers...



More: http://gata.org/node/19528
Yes I saw this.
It raises the question as to why preach doom now ?
In order to hopefully get our idiot gov to correct its course. If ya wait until there is a crisis on the doorstep it's suddenly too late to correct course.
Also, when we're talking a nearly 250 year old system entering end game, does it really matter if someone's warning comes at the two year mark, five year mark, or ten or twenty. In the grand scheme of things, all of those time frames will be right at the end, if you were to graph it out.

The difference is, that some people have better and earlier foresight than others do.

Where some can take a quick educated look at a situation and see impending doom, most others are still just going along fat dumb and happy.

Imho, anyone should be able to understand easily where an inflationary monetary system inevitably leads, but the vast majority haven't a clue about stuff like that.

Case in point, one of the top economic advisors to the bidet hasn't a clue as to how bonds and gov debt work.
I could run circles around this guy on the topic, as could most (if not all) of everyone else on this forum.
...oh, and he admits that MMT is their policy.
Short, less than two minutes. Just might be the scariest vid you've seen in awhile.




Well we are at the two year mark from Ray Dalio's original dollar crisis prediction. The dollar is facing challenges, but I'm not sure we are at crisis yet.
Again, the point is to do something before there's a crisis.
.....and that means making changes when to most, nothing seems wrong to have to make changes, so they say why change anything?

It'd be like driving cross country on bald tires, and thinking you'll take care of them as they blow out. Ie: when the crisis comes. Well that's what our gov is doing. Except our road trip started around a hundred years ago, and the tires are getting bald.
 
@Joe King - I agree with your point on the reason for sounding alarms. It totally makes sense coming from a high profile individual such as Ray Dalio. My comment - the first quote in your post - was from ~5 years ago (before Covid) and was addressing the point that the doomer rhetoric was coming from the IMF which is largely an organ of the Fed/US Treasury/US Gov. They have historically provided sober analysis of 3rd world countries' fiscal/monetary situations ("you're fucked and need our help"), but not so much on the USA.
 
They are still doing it. It's because even they can see the writing on the wall.

 

 
It's not the dollar as much as it's government bonds from USA and UK. They are worth anything once the music stops.
 
It's not the dollar as much as it's government bonds from USA and UK. They are worth anything once the music stops.
They're technically the same thing, with the difference being that a US bond for a dollar is a dollar that pays interest, while a dollar in cash does not.
 
They're technically the same thing, with the difference being that a US bond for a dollar is a dollar that pays interest, while a dollar in cash does not.
The bond doesn't pay interest. The bond ISSUER pays the interest.

Does it pay the interest if it is in default?

If the dollar collapses from CTRL+PRNT, will the interest it pays, be worth anything?
 
The bond doesn't pay interest. The bond ISSUER pays the interest
To the holder, it's the same as holding a dollar that pays them interest.

If you buy a bond for $1 at 5% interest, at the end of the year you'll have your dollar plus five cents.

Had you simply held the dollar itself for that same year, all you'll have is the same $1 bill. Minus any loss in purchasing power. Which you also have with a bond, but the interest helps make up for it a bit.



Does it pay the interest if it is in default
We'll have to cross that bridge when it happens. Until then, a $1 bond is like holding $1 bill that pays interest.

I'm just explaining how it's looked at. Treasuries are viewed as cash.




If the dollar collapses from CTRL+PRNT, will the interest it pays, be worth anything
Well yea, but that hasn't exactly happened yet, has it?

I'm with you on the likely future prospects of the $, but if you know when it's gonna happen, it'd really help.
My gut says sooner as opposed to later, but those are relative terms.
....and therein lies the problem. The writing can be seen on the wall. It's been on the wall for decades. It's baked into the cake that there's a cliff comin'. It's figuring out when it is coming, that is the problem.

Also, suppose that everyone sees said wall with writing on it and acts immediately to extract themselves from what they now see as a failed system, that action itself would cause systemic failure.
.....but at that point it wouldn't have had to happen yet.
 
Big boys shitting pants
Volatility rises
Gold protects the wise
 
This is apparently from 2022. I must have missed it when it initially aired (or was published):

 
There will come a time when Treasuries are not as liquid as they are now. The FED is one of the main buyers. What happens when they go down with the other banks?
 

 
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