Ray Dalio

Long, meaning they own stuff.

and they borrowed money to own it, and it's going down in value.

I think it's pretty easy to judge on a...

you know, an intermediate or longer term basis because there's a choice, right?

The predominant, the big issue is, you know, okay, the government can come in and print the money and give money to anybody they want to give money to.

But when they do that, that typically devalues the money.

So if, think about it, if you're holding a bond, you know, you got a claim on money.

But the claims are too much.

So one way or another, you're either not going to get back that money in full.

Well, right now, I couldn't give you the exact number off the top of my head, but there's

household debt, corporate debt, and government debt.

Well, that's right, but it's not expected to pay it off in a year.

I want to go back to my main point to make this clear.

If you're holding that debt, you are holding something that money will come back.

Let's say, and the government can print the money,

But if the money's hard, if that's going to be good money that's coming back, it's going to be hard for those entities to pay back because it's a lot relative to their income and cash flows to pay it.

And that means that the default risk rises.

However, because...

you're holding that, it means that the debt will be bad one way or another.

It's either bad because they don't pay it and needs a haircut for them to pay it,