Bridgewater's Dalio: 'Helicopter money' might help U.S. economy

Reuters ^ | 2-18-2016 | Jennifer Ablan

[Citizen Zed]

Ray Dalio, founder of the world's largest hedge fund Bridgewater Associates, says the next big monetary and fiscal move should include an airdrop of money from helicopters to stimulate the U.S. economy.

He may not be entirely serious about "helicopter money." But in a client note sent out this week, Dalio said the U.S. Federal Reserve's ability to boost growth through lowering interest rates and quantitative easing is "weaker than it has ever been."

"Monetary Policy 3" or MP3 will have to be directed at spenders more than at investors and savers, he said.

[Citizen Zed]

If that fails, use Monetary Policy 4.

[Farmer Dean]

Like a blood transfusion to a person with an aneurysm,it's a bandaid fix.

[PGR88]

And no doubt any FED Helicoptor money will pass through Dalio’s hands at some point soon.

[Lorianne]

I think he is saying to drop the money on hedgefunds.

[outofsalt]

Under no circumstances should fiscal policy be adjusted. Monetary policy is the only fix. /s

[grania]

duhh. Money that immediately circulates through the economy. The best way to stimulate economies, especially local ones, is to get it to people who will use it on everyday expenses. Not giving a COLA to Social Security recipients was JUST PLAIN DUMB. Creating work opportunities for those in poorer neighborhoods is another way to get money where it will stimulate local economies.

Instead, we have insurance, fees, and taxes using up ever more money, every month it seems. Those things that can't be avoided increase in price.

Perhaps anyone, before they can serve on the Federal Reserve, in any upper tier position in a bank, or be elected to DC have to spend some time in a low-rent area of an inner city, going to and living on a $12 and hour job.

grrr....

[Don Corleone]

Explain to ignorant me how NEGATIVE interest rates help this economy.

[Idaho_Cowboy]

Interesting the “Let's give banks oodles of reserves and make it harder than h8## to get a loan and regulate the $&!% of out of business model” isn't working.

[Boogieman]

“Dalio said the U.S. Federal Reserve’s ability to boost growth through lowering interest rates and quantitative easing is “weaker than it has ever been.”

They’ve never been “boosting growth” with this failure of a strategy. They’re just diluting the currency, to create the illusion of growth. It will actually retard growth, in the long run.

[Boogieman]

They make it a “losing bet” to keep savings, so it is supposed to encourage us all to spend our savings, thus stimulating the economy.

That’s the boneheaded plan, anyway. It actually would motivate me to put all my money into durable assets that won’t be affected by the negative interest rates.

[angryoldfatman]

[Eric Pode of Croydon]

directed at spender more than at investors and savers

Here's what has been directed at savers since 2008.

[ground_fog]

All these people care about is their inflated asset prices..they don’t care about America, or the American worker..just their alpha returns for the rich.

I hate that these f$ckers make me sound like a leftist.

[Organic Panic]

Sort of like something that allows people to keep more of their own money... Like a tax break for producers?