Ray Dalio

beginning of the end of the monetary system as we know it.

It's not just the US dollar, it's the fiat monetary currencies.

So the UK, the Euro, Japan, China all have similar debt problems and so on, and are dealing with the same interrelationships.

which is the reason you're seeing gold being chosen by the central banks.

They want a currency.

Gold has always been the main currency, and it's the only non-fiat currency, in other words, not the currency that can't be printed, that they want.

And so that's why you're seeing central banks move and sovereign wealth funds move to gold, and that's the nature of the shift of the monetary system.

Sure.

Through history and now, there are five big forces that are interrelated and generally transpire in cycles as I described.

And we know they exist because everything that we are going to talk about will fall into one of those categories.

That is the debt money economy cycle, meaning credit is buying power.

You give buying power to entities like, it's like the circulatory system.

You give credit, and if that credit produces, it'll produce debt.

But if it produces an income that is good enough to pay the debt, it's a healthy system.

but when it produces more debt and more debt service payments, that squeezes out the spending, and that produces a problem, and then there's a supply-demand problem, and then there are economic problems.

Okay, that's one cycle.

The second cycle related to that, because money and wealth

have political and social effects is that there becomes big differences in wealth and values.

And so when there are big differences in wealth and values, and the people feel that the system isn't working for them, you see greater political polarity between the left and the right.

It becomes more the hard left and the hard right.