So they’ll say, ‘I’m safe,’ as they will lose 4, 5, 7 percent per year.” The population does not immediately notice inflation caused by governmental money printing. “People will look at how much they’re worth in nominal dollars, not in inflation-adjusted dollars.Interest rates cannot be further reduced, since they are already negative and have been negative for years, which means there won’t be an easy solution to curtail it.The interesting aspects of the current inflation are: The good news is that during most economic crisis situations most people remain employed and most companies don’t close down overnight. Ray Dalio now predicts shrinking of the American economic dominance, the decline of the USD as the world reserve currency, exit of many financial assets and projects out of the US as a jurisdiction (and potentially into cryptocurrencies and other alternative asset classes that are not so easy to force-sell, restrict or tax for a potentially populistic governmental policy-makers). In most similar historic situations, such mix resulted in massive government defaults and debt restructurings, high inflation, and significant changes in political powers (think the early 1930s or 1970s). In his view, our current situation can be described as a mix of high government debt, accelerating income and power gaps between rich and poor, lack of good governance in politics, which leads to inefficient resource allocation, and elevating influence of populistic leaders. His hedge fund, Bridgewater, has over $200 billion of assets under management. Ray Dalio is one of the most successful hedge fund managers turned researcher and historian, who made his name by predicting the financial crisis of 2009. I just finished reading the new book by Ray Dalio about the cyclical nature of financial and debt systems, and how political events, pandemics, and natural disasters may impact these economic cycles. Published by Yana on JanuJanuary 26, 2022 Ray Dalio’s “Changing World Order” and What It Means for FinTech and Crypto

Ray dalio changing world order