Ray Dalio

That confiscation can easily take the form of taxing on holding it. For example, one of the problems with real estate, besides the fact that it doesn't move, so you can't use it internationally, is it is a readily taxable asset. It's there. It's there. And therefore, they won't take it and you can get it. We have to understand that taxes and confiscations are one and the same.

It's so interesting. I've studied history and, of course, I've been through a bunch of these like the 70s. Commodities, ideally also those that might do well if the economy doesn't do well because you're dealing also with the inflation environment. are always gone to.

It's so interesting. I've studied history and, of course, I've been through a bunch of these like the 70s. Commodities, ideally also those that might do well if the economy doesn't do well because you're dealing also with the inflation environment. are always gone to.

You don't want economically sensitive commodities as much, unless sometimes maybe the economy will do pretty well, but usually it doesn't. But like in the Weimar Republic, give an example, rocks... were used as storeholder wealth. Now, that sounds really funny, but they were considered building ingredients.

You don't want economically sensitive commodities as much, unless sometimes maybe the economy will do pretty well, but usually it doesn't. But like in the Weimar Republic, give an example, rocks... were used as storeholder wealth. Now, that sounds really funny, but they were considered building ingredients.

In other words, the rocks were used to build things with, and so they would store the money in rocks, but any asset.

In other words, the rocks were used to build things with, and so they would store the money in rocks, but any asset.

Yeah, except technology devalues them. The new technology devalues them, right? So that's the question. It is those things that can't be devalued. Commodities, by the way, in real terms, all commodities, every single commodity in real terms over long periods of time have declined because of productivity. Every commodity. has declined in real terms because of productivity.

Yeah, except technology devalues them. The new technology devalues them, right? So that's the question. It is those things that can't be devalued. Commodities, by the way, in real terms, all commodities, every single commodity in real terms over long periods of time have declined because of productivity. Every commodity. has declined in real terms because of productivity.

So you would like productivity producing assets that cannot be taxed, can move around from place to place. So equities of a certain type tend to do that. That's why currency depreciations are associated with that combination of things. Currency depreciation Lowering interest rates and producing money causes equity assets to go up, not necessarily in real terms, like in the 70s.

So you would like productivity producing assets that cannot be taxed, can move around from place to place. So equities of a certain type tend to do that. That's why currency depreciations are associated with that combination of things. Currency depreciation Lowering interest rates and producing money causes equity assets to go up, not necessarily in real terms, like in the 70s.

They didn't go up in real terms. They went down in real terms. But it is those kinds of storeholds of wealth that can't be taxed as easily that benefit from inflation rather than not.

They didn't go up in real terms. They went down in real terms. But it is those kinds of storeholds of wealth that can't be taxed as easily that benefit from inflation rather than not.

The purest play is gold because gold can be transferred between countries. It's used by central banks as a reserve. So central banks will go to it. They are going to it. They'll hold it. It can be private. Right. More so than crypto. Crypt is very easily taxed. You know, in other words, the government knows where it is and who's doing what and so on. And it's also an effective

The purest play is gold because gold can be transferred between countries. It's used by central banks as a reserve. So central banks will go to it. They are going to it. They'll hold it. It can be private. Right. More so than crypto. Crypt is very easily taxed. You know, in other words, the government knows where it is and who's doing what and so on. And it's also an effective

asset to tax, but it has benefits too. It was very interesting when we had negative rates. I was with a group of the central bankers in a discussion of how negative they can have rates, and they described that they can have negative rates only to the extent that there's not enough capacity for paper money to be stored. So they estimated, it was funny actually,

asset to tax, but it has benefits too. It was very interesting when we had negative rates. I was with a group of the central bankers in a discussion of how negative they can have rates, and they described that they can have negative rates only to the extent that there's not enough capacity for paper money to be stored. So they estimated, it was funny actually,

that they could have over a short period of time up to 400 basis points negative rate.

that they could have over a short period of time up to 400 basis points negative rate.

Because there wasn't enough. They calculated how much vault storage space there was. And then they calculated that they would produce more vault storage space because it would be profitable to do that. And then they said, and the good thing is, We can tax it. OK, because if you have a digital currency, you can tax it.