Ray Dalio

So and at the end of the day, since 1971, when we went off the gold standard and we went to a fiat monetary system, we have always done that, you know, and, you know, the Fed put.

And, you know, that's that that's the way it is.

Well, what it does is it's like using the hair of the dog that bit you.

Okay.

It's what you do is you give more money in credit.

And what happens is, to get out of it, because then you make it easier to pay the debt.

Yes.

Like in 2008 or 2020, you give the money, okay?

And you give the credit, and you fund it, and you make that.

But that makes the debts go up again, okay?

Until then you reach...

the point where the debt is squeezing on the expenditures and you have the supply-demand.

So that's why you have these big debt cycles, you know?

Well, because of that, my last book, my most recent book put out about a little less than a year ago is called How Countries Go Broke, the big cycle.

And what I wanted to do is to just show 35 cases of it,

That is just the mechanics to show how it works, okay?

But it is that dynamic of the squeezing on the spending and the supply demand.

And then you start to see it where, as I was saying, the long rate goes up while the short rate comes down because the central bank's pushing the short rate down.

And then they shorten the maturities of the debt.

And then the central bank buys that.