Ray Dalio warns declining US empire could drag down crypto

---

Bridgewater Associates, the hedge fund run by Ray Dalio which manages the world’s wealthiest investments and whose daily newsletters are read by governments and central bankers, has issued a stark warning for the US government.

Not only did it repeat the central message of their founder’s newest book, called Changing World Order, but it immediately told investors which assets could turn risky as the bond market changes.

⚠️ The world’s biggest hedge fund is warning that the recent sell-off in US government bonds could accelerate, in a shift that threatens high-flying assets including blank cheque companies and crypto currencies - FThttps://t.co/cuBhCZxJxk

— Anthony Barton (@ABartonMacro) March 14, 2021

According to Dalio, who recently admitted that he is now understanding of Bitcoin, the biggest risks for investors as the Federal Reserve winds down stimulus, would lie in assets that have gone up as money printing really took off, namely tech stocks and cryptocurrencies.

Medicis around 1350

He recently explained his position on Bitcoin:

Like the making of credit that made bankers rich starting with the Medicis around 1350, is making its inventors and those who got in on it early very rich and has the potential to make many more people very rich and to disrupt the existing monetary system. Those who have built it and supported the dream of making this new kind of money a reality have done a fabulous job of sustaining that dream and moving Bitcoin (by which I mean it and its analogous competitors) into being an alternative gold-like asset.

In an interview with the FT on Monday, Bob Prince, the co-chief Investment Officer who runs the hedge fund alongside Dalio, admitted that they now view a possible bubble in crypto and tech as linked to the FED’s money printing.

In other words, when the Fed stops the stimulus, expect the bubble to pop.

FT needs to get a Bloomberg.

AMZN trading at 20x 12m fwd Ebitda - not to be grouped with that electric car co, spacs, or crypto pls

Bridgewater’s Prince warns on risky assets after bond decline - https://t.co/hP8gfBEGrC via @FT pic.twitter.com/ZJg0O5ZE4B

— East (@east_cap) March 14, 2021

I must admit that Ray Dalio’s newest book Changing World Order, in which he presents a long term view of rises and declines of nations over a 500-year period, is of such calibre that I have immediately ordered copies of his Principles and Principles for Navigating Big Debt Crises.

The book explains in detail how the current position of the US, in the aftermath of the global covid-19 pandemic, is to maintain its position as the world’s leading empire (guaranteed by military bases all over the world) by printing money.

However, as it’s debt position grows, the US government will be met with an ever larger threat of takeover by China.