Now is the time for society to think about alternative currency.
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DAVOS, Switzerland – Billionaire investor Ray Dalio thinks the US debt crisis could undermine the dollar’s (DX=F) value as a store of value.
So now is the time to think about the wider acceptance of an alternative currency like crypto.
“We have too much debt and we’re producing too fast. So yes, we need to think about alternative currencies,” he said on the Yahoo Finance inaugural podcast at the World Economic Forum in Davos, Switzerland (video above; listen below).
Dalio added, “By the way, it’s not just individuals who are thinking about it. These countries and the central bank are thinking. Changes and bonds and debt as assets, and buying gold. And other assets are real in terms of integration.”
After Donald Trump won re-election in November, the price of Bitcoin increased by 165%. The new administration is widely expected to be friendlier to the crypto world. Trump and his wife, Melania Trump, have released their own meme coins.
Dalio became CEO of Bridgewater Associates in 2017 and will step down in October 2022. His current role with the firm includes chairing a committee that oversees the firm’s investment strategies.
Investment veteran, with Estimated net worth $14 billion, not strange when it’s against the grain market and economic calls. Some were shocked out; Others haven’t yet – if at all.
In an April 2022 interview, Dalio warned me about one-off inflation — or slow growth and high inflation. That hasn’t exactly panned out in terms of growth as the world recovers from the Covid-19 pandemic. However, the purchasing power of consumers continues to decline due to high inflation in global economies.
More recently, Dalio has been calling attention to the nation’s massive deficit, which will hit a staggering $1.8 trillion in fiscal year 2024. He shares more about his debt concerns in a new online book.How countries are destroyed.”
Worst-case scenarios with US debt (such as massive inflation) have not occurred. But the markets are not dismissive of the fact that the Trump administration could add to the debt levels by extending the signature tax cuts.
Dalio thinks the 10-year Treasury yield is now hovering around 5%, which could weigh on stocks and support more moves in areas like crypto.