according to materials from the site - By BH NEWS

Ray Dalio, the renowned founder of Bridgewater Associates, recently discussed the potential economic consequences of the decline in the US dollar's value relative to other major world currencies in an interview. This decline may herald a period of stagflation, reminiscent of the turbulent 1970s with their combination of high inflation, soaring unemployment, and sluggish economic growth.

What challenges is the global economy facing?
Dalio stated that these economic difficulties are not unique to the US. Similar challenges are faced by economies such as Europe, Japan, and China. He emphasized an impending global issue as countries fail to meet their economic obligations, while such unsustainable practices as money printing exacerbate the situation.

The current level of money supply is insufficient, which could lead to a massive currency devaluation. Dalio suggested that as trust in national currencies declines, precious metals may become a preferred alternative, urging investors to reconsider their asset diversification strategies.

How safe are investments in gold?
Dalio suggested that gold and other precious metals may be more reliable than the US dollar and other leading currencies in conditions of depreciation. While a weakening dollar does not necessarily mean a corresponding rise in world currencies, investments in gold could yield substantial returns.

He warned of a likely return to stagflation conditions similar to those of the 1970s, emphasizing that such a scenario could lead to a widespread decline in currency values. These issues are universal and affect countries such as Europe, Japan, and China, not just the US.

What measures should be considered to ensure budget stability?
The US government may need to urgently cut spending and raise taxes to contain the growing budget deficit. Without action, the threat of serious economic instability looms, as the deficit-to-GDP ratio continues to rise annually.

Dalio pointed out the negative consequences of ongoing money printing and currency devaluation, especially for bondholders. If no measures are taken, a downturn in the US treasury bond market could affect all financial sectors, disrupting both economic and social structures.

The state of the US treasury bond market is vital for the global financial architecture, and disruptions in it can have far-reaching consequences. It is crucial for the government to take decisive action to mitigate possible crisis impacts.

Ray Dalio's observations contain important warnings for investors, both individual and institutional, highlighting the urgent need for strategic adaptation of policies by central banks and governments. Investors are advised to refine their portfolio strategies and improve risk management to cope with persistent global economic challenges. His ideas are critical for short-term and long-term economic strategies in the current environment of uncertainty.

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