Billionaire investor Ray Dalio warns that worse times are ahead as the US enters a debt crisis. “In my opinion, we are at the beginning of a very classic late, big cycle debt crisis, when the supply-demand gap, when you are producing too much debt and have a shortage of buyers,” Dalio said. “Things are going to get worse in the economy,” he added, predicting a balance-sheet recession at the very least. Famed hedge funder Stanley Druckenmiller believes a hard landing is inevitable. “Our central case is there’s more shoes to drop, particularly—in addition to the asset markets—economically,” the veteran investor warned, calling Silicon Valley Bank’s collapse “the tip of the iceberg.” While the Fed continues in its fight against inflation, top economist James Rickards warns that “the most significant development in international finance since 1971” will be unveiled on August 22: Brazil, Russia, India, China, and South Africa are set to rollout a major new currency that may ultimately displace the U.S. dollar.
Markets Insider/Zahra Tayeb
Billionaire investor Ray Dalio says the US is at the start of a debt crisis – and worse times are ahead for the economy
Billionaire investor Ray Dalio said the US is at the beginning of a debt crisis – and warned worse times are ahead for the economy.
“In my opinion, we are at the beginning of a very classic late, big cycle debt crisis, when the supply-demand gap, when you are producing too much debt and have a shortage of buyers,” Dalio said during the Bloomberg Invest conference on Wednesday.
“What’s happening now, as we have to sell all this debt, do you have enough buyers?” he said. “When I look at the supply-demand issue for that debt, there’s a lot of debt, it has to be bought and has to have a high enough interest rate,” the Bridgewater founder added.
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Fortune via Yahoo Finance/Zahra Tayeb
Billionaire investor Stanley Druckenmiller warns there are ‘more shoes to drop’ and says Silicon Valley Bank was ‘probably the tip of the iceberg’
Stanley Druckenmiller fears a recession is on the way after more than a year of aggressive interest rate hikes from the Federal Reserve have failed to quash inflation. The famed hedge funder, who now operates the Duquesne Family Office, said Wednesday that despite the economy’s recent resilience—headlined by a low unemployment rate and positive first-quarter GDP growth—he believes a “hard landing” is inevitable.
“Our central case is there’s more shoes to drop, particularly—in addition to the asset markets—economically,” he told Bloomberg Wednesday.
For years now, Druckenmiller has criticized Fed officials for blowing up an asset bubble in stocks, real estate, and other sectors after the Global Financial Crisis, with their easy money policies. And even after the Fed switched stances and started raising rates in 2022, leading to a dismal year for markets, he believes there’s more downside ahead—that wasn’t the bubble popping.
You can read the full article, here.
Daily Reckoning/James Rickards
Rickards Drops Bombshell
On Aug. 22, about 2½ months from today, the most significant development in international finance since 1971 will be unveiled.
It involves the rollout of a major new currency that could weaken the role of the dollar in global payments and ultimately displace the U.S. dollar as the leading payment currency and reserve currency.
It could happen in just a few years.
The process by which this will happen is unprecedented, and the world is unprepared for this geopolitical shock wave.
You can read the full article, here.
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