Ray Dalio

Very well said, Dave. You can't get richer by making money. You know.

That's right. And there are two purposes of money, which is as a medium of exchange and a storehold of wealth. Saving. is very important. And if you don't have savers who have it as an effective storehold of wealth, then you don't have a viable long-term credit market. People don't understand that the bonds become a bad deal. You need that. Like any marketplace, you need purchasers and sellers to

That's right. And there are two purposes of money, which is as a medium of exchange and a storehold of wealth. Saving. is very important. And if you don't have savers who have it as an effective storehold of wealth, then you don't have a viable long-term credit market. People don't understand that the bonds become a bad deal. You need that. Like any marketplace, you need purchasers and sellers to

to be able to have an efficient negotiation to achieve a balance without the government coming in and printing a lot of money and messing up, make a big mess. It's like they made very severe negative real rates. And we know what happened with the negative, severe negative real rates.

to be able to have an efficient negotiation to achieve a balance without the government coming in and printing a lot of money and messing up, make a big mess. It's like they made very severe negative real rates. And we know what happened with the negative, severe negative real rates.

And the government, while they were making the significant real rates, it was the government that was the big buyer. Okay, so the government takes it on and they make negative rates. So what happens is then you get everybody leveraging up.

And the government, while they were making the significant real rates, it was the government that was the big buyer. Okay, so the government takes it on and they make negative rates. So what happens is then you get everybody leveraging up.

Then you've got a problem. And so that's how it works. And it's a global issue. It's not just an American issue.

Then you've got a problem. And so that's how it works. And it's a global issue. It's not just an American issue.

First, when there's a lot of borrowing to service debt, there's what's called You know, the death spiral is – we typically refer to that when a company has it, the government can have it too. And that is that dynamic where there's too much debt and you have to borrow to service the debt and then – people, investors know that that's a problem to service the debt. So the credit is worse.

First, when there's a lot of borrowing to service debt, there's what's called You know, the death spiral is – we typically refer to that when a company has it, the government can have it too. And that is that dynamic where there's too much debt and you have to borrow to service the debt and then – people, investors know that that's a problem to service the debt. So the credit is worse.

And that means that interest rates go up, which is the worst thing that can happen to a heavily indebted entity. And then as they rise, you get that spiral, you need to borrow more and so on. So

And that means that interest rates go up, which is the worst thing that can happen to a heavily indebted entity. And then as they rise, you get that spiral, you need to borrow more and so on. So

That is also noticed when then there is, the key spot is when the debt service becomes large, and then like the real red flag, the biggest red flag, is when there's then the selling of the debt beyond the new supply, but the holders of it sell it. And then you can see it in the market action because you can see that long-term interest rates rise

That is also noticed when then there is, the key spot is when the debt service becomes large, and then like the real red flag, the biggest red flag, is when there's then the selling of the debt beyond the new supply, but the holders of it sell it. And then you can see it in the market action because you can see that long-term interest rates rise

while short-term interest rates aren't rising or go down. So it's the free market losing its desires. You have a balance problem in the free market out there. And then you start to see that when the currency then depreciates, particularly relative to gold or Bitcoin or other assets, and sometimes other currencies.

while short-term interest rates aren't rising or go down. So it's the free market losing its desires. You have a balance problem in the free market out there. And then you start to see that when the currency then depreciates, particularly relative to gold or Bitcoin or other assets, and sometimes other currencies.

But typically, these things happen, broadly speaking, together, in which all currencies go down relative to other things like gold, Bitcoin, or tangible values. And so that's what it looks like. That's that edge. Then you start to see the dynamics. So you either see the central bank comes in very quickly and does the buying, and when that happens, you see then the currency.

But typically, these things happen, broadly speaking, together, in which all currencies go down relative to other things like gold, Bitcoin, or tangible values. And so that's what it looks like. That's that edge. Then you start to see the dynamics. So you either see the central bank comes in very quickly and does the buying, and when that happens, you see then the currency.

To take Japan, for example, if you were a holder of Japanese bonds, you lost about 80% of your money relative to gold and about... 60% relative to U.S. bonds because you received an interest rate that was 3% less than the corresponding interest rate in the United States. So you lost the interest rate.