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Posted on 05/20/2025 10:19:00 AM PDT by george76
Bridgewater founder Ray Dalio said Moody’s downgrade of the U.S. credit rating does not take into account the risk of the federal government printing money to pay its debt.
Bond holders would suffer losses due to the depreciating value of the money they are getting paid, Dalio said.
...
Bridgewater Associates founder and billionaire Ray Dalio warned Monday that Moody’s downgrade of the U.S. sovereign credit rating understates the threat to U.S. Treasurys, saying the credit agency isn’t taking into account the risk of the federal government simply printing money to pay its debt.
“You should know that credit ratings understate credit risks because they only rate the risk of the government not paying its debt,
...
“They don’t include the greater risk that the countries in debt will print money to pay their debts thus causing holders of the bonds to suffer losses from the decreased value of the money they’re getting (rather than from the decreased quantity of money they’re getting),” the Bridgewater founder said.
Moody’s on Friday cut the U.S. credit rating one notch to Aa1 from Aaa, citing the federal government’s ballooning budget deficit and soaring interest payments on the debt. It was the last of the three major credit agencies to downgrade the U.S. from the highest possible rating.
...
for those who care about the value of their money, the risks for U.S. government debt are greater than the rating agencies are conveying,
(Excerpt) Read more at cnbc.com ...
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You can’t just print up more of it?
> the risk of the federal government printing money to pay its debt <
That will 100% happen. The only question is when the printing presses will be sent into overdrive.
What other options does DC have? The interest alone on the debt is crushing. And neither the Congress nor the White House has any plan to methodically pay down what we owe. Instead, they all add to it.
Simply default on the debt? Might work okay for a company in bankruptcy, but not for a national government.
I dunno. Maybe I’m missing something. But I see hyperinflation as the only way out. And that would cause civil unrest, the likes we haven’t seen in a long time, if ever.
However, usually Democrats in positions of power overwhelmed that effort and had me terminated several times. When the house of cards falls and someone tells/shows the masses what has ACTUALLY been going on, public officials will have nowhere to hide.
Anyone who thinks we’re going to actually pay that debt is stupid.
And Trump is not a fiscal conservative. He just is not. He isn’t pushing for the changes necessary.
Suddenly billionaires are all et up and worrit about us plain folk.
I think that was shown in his first term.
If we improve our Productivity or our GDP, this is not that big of an issue.
He’s pushing domestic production... which helps... Some of what he is doing will help fix some of the money supply, but it might not be enough IMO. Especially in light of the GOP in Congress not backing him 100% on the cuts that need to be made.
Public officials will hide behind the same place they always hide - a smoke screen of lies and deception. There are plenty of scapegoats on which to blame "the troubles".
And when that eventually fails, a planned little war will reset everything.
Things never go quite as planned.
Sure, you’re right.
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