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Billionaire Former Crypto Skeptic Ray Dalio Issues Inflation Warning On Cash: Report

The experienced hedge fund manager and American investor Ray Dalio warns of the consequences of rising consumer goods prices.
In a new interview on Yahoo Finance, Dalio explains why he is very concerned about the high inflation power.

“I am very concerned about this because the amount of money and credit that needs to be produced and budgeted is a huge increase, and yet, if not spent, it creates its own problems.

The markets are sensitive to this. “

Dalio’s comment comes after the Labor Department’s consumer price index rose 6.8% in November, the fastest in 39 years. In a LinkedIn post, he says that high inflation can be especially devastating for those whose money is in fiat.

“Some people make the mistake of believing that they are getting richer because they see their assets rise in price without seeing their purchasing power erode.

Most injured are those who have their money in cash. “

The billionaire who once told investors to get off Bitcoin (BTC) away before giving up his stance on the flagshipCryptocurrency changed, warns that the US is printing too much money without increasing its productivity.

“Now if we look from the perspective of an investor or an individual, we have to remember that you cannot increase the standard of living just by creating money and credit, especially if you stop increasing productivity.

In the long run, your wealth and purchasing power will depend on how much you produce. That’s because real wealth doesn’t last long, and neither does inheritance.

This is why it is so important to be continuously productive.

Based on his study of why nations succeed or fail, Dalio says that countries that print too much money usually don’t do well.

“When there’s a financial problem … and the coffers are empty, they print money. And when they print money … it devalues ​​the money.

This creates the danger of an internal conflict, the danger of a kind of civil war. “
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Source: Crypto News Deutsch

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