Ray Dalio : AMERICA’S ECONOMIC COLLAPSE WILL HAPPEN IN 2021
Ray Dalio, billionaire and founder of the world’s largest hedge fund Bridgewater Associates, is deeply concerned about a divided and deeply unequal America as President-elect Joe Biden prepares to take the reins..
Ray Dalio (Ray Dalio) Warns Leaders Urgently Need To Tackle The Critical Issues Of Increasing Inequality, Political Polarization And Rising Debt.
«There must be some kind of solution on a system that works for most people and that should be productive», – told Dalio to the journalist CNN Poppy Harlow (Poppy Harlow) in an interview on tuesday. «And it can either be achieved in a smart bipartisan way, or it will happen as a result of a great conflict».
The pandemic has demonstrated how uneven our system is. As Wall Street euphoria pushes stock prices to new heights and Main Street goes into crisis.
About 8 million Americans have joined the ranks of the poor since June, according to researchers at the University of Chicago and the University of Notre Dame. According to the census, more than 27 million adults lived in households that «sometimes or often» have experienced food shortages in the past seven days.
At the same time, the 2020 elections and the president’s attempts Donald Trump undermine their results – further exacerbated the political crisis in the country.
«I have studied history and cycles over the past 500 years, and these things are repeated over and over again.», – said Dalio. «A large wealth gap, a large value gap, at the same time large debt and economic downturns create conflict and vulnerability».
The interview was conducted last week before Dalio’s 42-year-old son died in a car accident..
«My family and I are now grieving and reflecting on this, and would prefer to remain without contact with the outside world for now.», – wrote to Dalio in a LinkedIn post. «We know that the terrible pain that we feel, have experienced and continue to experience many others, so we express our sympathy for them.».
Dalio, who founded Bridgewater Associates in 1975 and is currently co-chairman of a hedge fund, has called on political leaders to find a middle ground for tackling fragile national inequalities..
«To unite the country and not have prerequisites for civil war … it is necessary to unite the country, but in a reasonable way», – said Dalio.
Despite such harsh statements, Dalio stressed that he did not want the Americans «panicked». Instead, he tries to make it clear to voters and leaders that compromising with political opponents can be difficult, but not the worst..
«The worst alternative is that one side or the other says:«This is not my country anymore. These are not my people», – he said. «This is when the reason people stand behind is more important than the means of resolving their differences. This is a threatening situation. History has shown it to be so».
For months, leaders in Washington have struggled to agree on what would have to be the only correct and necessary solution in the face of the coronavirus pandemic. It is on agreement an additional federal aid package for the Covid-19 pandemic that would prevent the loss of benefits for millions of Americans.
The stalemate finally ended late Monday night as the effects of the pandemic intensify, slowing economic recovery and accelerating layoffs.
According to the latest weekly report, a staggering amount of Americans (885,000) filed initial applications to receive unemployment benefits. Major companies including Coca-Cola, Disney, Post-It and 3M have announced massive layoffs. According to the census, about 13 million adults, or 9.1%, have no ongoing rent or mortgage payments, or are unsure if they can pay their bills on time next month..
Yet parts of the US economy are booming. Housing is on the rise, tech companies are minting money, and stock prices have never been higher than they are now..
«This Covid-19 crisis not only exacerbated the situation, but also ripped off the veils and exposed extreme injustice in our society and around the world», – said in a recent interview with CNN Business Rajiv Shah (Rajiv Shah) President of the Rockefeller Foundation.
«We’ve seen wealthy families and communities thrive on the acceleration of digital technology and high asset values made possible by low interest rates and loose monetary policy.», – added Shah. «And we watched how working families in America and around the world suffered greatly».
Dalio said the United States must address inequality directly by investing in the future. He stressed the need to increase productivity through improved health care, infrastructure and especially education.
«If we do not have the high productivity and mass employment that comes from education programs, job courses and the like, then we will have a continuation and deterioration of the great polarization, and I think that this will be a problem.», – he said.
As an example, Dalio pointed to the fact that some students do not have access to computers or high-speed Internet..
«No internet connection or no computer today – it’s like not having water, electricity or a telephone 50 years ago», – he said.
Of course, investments in education and infrastructure cost money, and the US is already struggling with huge budget deficits..
Dalio, whose net worth is estimated at nearly $ 17 billion by Forbes, has often expressed support for raising taxes for the rich..
While Dalio did not support a specific tax rate, he said that it «should be well designed and should be larger».
However, the billionaire stressed that radical changes in the US system should happen sooner rather than later, since, according to him,, «there is a polarization, a debt situation and circumstances in which changes are likely to need to be made, possibly of a revolutionary nature».