Billionaire investor Dalio warns of central bank losses – Bitcoin anyone?

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Ray Dalio, the retired founder of Bridgewater Associates, says that stocks are expensive and that central banks have made big losses. Bitcoin remains strong.

Dalio spells out the awful truth for UK economy

Ray Dalio was interviewed last Friday on Fox Business news and he had a lot of negative comments to make about stocks and central banks. He warned that due to losses, a lot of central banks were operating under “negative capital” and said that this was the case in the UK, where rules specified that the bank had to get capital from the government.

According to Dalio this meant that the UK government had to come up with more money which he reasoned would equal 2% of GDP and consequently 2% under the budget deficit, causing the UK government to borrow more money yet again (or print it).

U.S. political infighting and geopolitical tensions 

He said that this same situation would probably not matter as much in the U.S., although he expressed the belief that if it became a political cause then this could change things.

On the current political infighting that was paralysing Washington, Dalio said that the “rules were in jeopardy” and he suggested that the U.S. could enter into a “great political conflict” next year as the economy worsens and geopolitical tensions with countries such as China and Russia become even more prominent.

Opinion

As the traditional monetary system caves in on itself all the fiat currencies across the world are going to lose more and more of their value and purchasing power, especially for the ordinary citizen.

Fiat currencies in developing countries will fare the worst, given that their currencies are in free fall against the U.S. dollar, and the dollar itself is being printed in the direction of hyper-inflation as the U.S. government and central bank attempt to keep heads above water in the face of the towering debt that currently stands at $33 trillion, to say nothing of many trillions of unfunded liabilities.

In such a world, a store of value that is outside of this system holds incredible value for those looking to save their wealth from extinction from the accelerating failure of fiat currencies.

Bitcoin is this store of value. Institutions are not stupid, and they will be moving wealth into this asset as soon as they are able. It would behove all individual investors to do the same, or at least educate themselves on what Bitcoin has to offer.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.