Ray Dalio, the founder of Bridgewater Associates, is warning investors not to keep their investments in cash right now as it’s not a safe investment as high inflation rages on. He says the Fed’s policy tightening could “come at a great cost” to the American people. In other news, economist and investment banker James Rickards is welcoming Americans to 1984 as he claims the government’s plans to eliminate cash by creating central bank digital currencies (CBDCs) are accelerating.

 

MoneyWise via Yahoo Finance/Jing Pan
‘Reducing inflation will come at a great cost’: Ray Dalio warns that the Fed will likely trigger something far worse than high prices. Here’s what he likes today

Some say cash is king. But according to Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, it may not be wise to keep too much of your investment money in cash these days.

“Cash is not a safe investment, is not a safe place because it will be taxed by inflation,” Dalio told CNBC last year.

But 40-year high inflation isn’t the only thing that’s concerning the billionaire investor at the moment.

In a LinkedIn post last month, Dalio warns that Fed’s tightening could lead to stagflation – an economic condition marked by high inflation, but without the robust economic growth and employment that usually come with it.

Continue reading, here.

 

Daily Reckoning/James Rickards
Welcome To 1984

I’ve been addressing the war on cash lately, and for good reason. While everyone’s attention is focused on the war in Ukraine, inflation and the Supreme Court, government plans to eliminate cash are accelerating.

For example, central bank digital currencies (CBDCs) are coming even faster than many anticipated. The digital yuan is already here; it was introduced in China last February during the Winter Olympics.

Visitors to the Olympics were required to pay for meals, hotels, transportation, etc., using QR codes on their mobile phones that linked to digital yuan accounts. Nine other countries have already launched CBDCs. Europe is not far behind and is testing the digital euro under the auspices of the European Central Bank.

The U.S. was lagging, but is catching up fast.

You can read the full article, here.

 

Kitco News/Zahra Tayeb
‘Gold hasn’t changed, the price of gold has changed’; What the gold price reveals about the macro-economy – Axel Merk

Tuesday, gold shaved $50 off its market value, falling to nearly $1,760. The 2 percent fall in price reveals that the “perception of the macro environment” has changed, and that “speculators” have sold some of their holdings, suggested Axel Merk, CIO and Founder of Merk Investments.

“Gold hasn’t changed, the price of gold has changed,” he said. “Policymakers don’t have many good options, so we might be in for some pain. In the short-term, people are selling everything.”

Merk spoke with David Lin, Anchor and Producer at Kitco News.

Keep reading, here.

 

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