Posted on 05/22/2025 9:36:33 AM PDT by SeekAndFind
Billionaire investment manager Ray Dalio has warned that the risks of US debt go beyond credit ratings amid the US government's mounting debt in the current economic scenario. The founder of one of the world's largest hedge funds said that regarding the US debt downgrade, credit ratings understate risks because they rate the risk of the government not paying its debt.
According to Dalio, credit rating agencies do not include the greater risk that countries in debt will print money to pay their debts, thus causing bondholders to suffer losses from the decreased value of the money they are getting (rather than from the decreased quantity of money they are getting).
Dalio is the founder of Bridgewater Associates and one of the few to foresee the 2008 financial crisis. "Said differently, for those who care about the value of their money, the risks for US government debt are greater than the rating agencies are conveying,” added Dalio in a post on ‘X’ (formerly Twitter).
Moody’s cut the US' sovereign credit rating by one notch to Aa1 from Aaa last Friday, citing the government’s expanding fiscal deficit and elevated interest costs...
(Excerpt) Read more at livemint.com ...
No worries. The FED was created to protect dollar currency. They are on the job!
Did he predict only the 2008 crash or is he one of the people who also predicted the crashes of 2002, 2003, 2004, twice in 2005, 2006, 2007,2009, 2010, 2011, 2012, 2013, 2014 etc. etc. ?
Doesn’t matter who he is and what his history is.
All that matters is mathematics.
If you doubt any numbers he is addressing, get your own numbers.
Hell I predicted the crash here on FR for over a year and most here made fun of me.
It was obvious back then far more than now. People were buying houses and flipping them every 3 months for $20,000-$50,000 gains. Over and over.
Record low interest rate and Bush’s put everyone in a house programs and the wholesale corruption of giving people who obviously could not pay for a house a loan made it worse.
The came the interest only loans so California people could buy houses that were priced so far out of line, no one could buy one with a regular loan.
“Record low interest rate and Bush’s put everyone in a house programs and the wholesale corruption of giving people who obviously could not pay for a house a loan made it worse.”
Bush didn’t do that.
The policy was mainly pushed by the democrats but he talked about record numbers of first time home buyers and record home owner rates. Its more the democrats than Bush, but he was a part of it too.
“Its more the democrats than Bush, but he was a part of it too.”
He went to Congress 3 times with warnings and calls for action.
He was ignored.
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