Ray Dalio

So, and as a result of what,

the projections are, it's likely that those deficits will then produce lots of bond sales which will compound it.

When you get into the point in the cycle where debt is needed to pay debt,

and compounds, it becomes a problem.

It becomes a problem also for the central banks, because the central banks, by the way, this is not just an American problem, this is a world problem, the central banks themselves own the debt, and they lose money on the debt.

And so when they're losing money on the debt and they have asset liability problems, then they also not only have to monetize essentially the other, the government's debt, but they also have to monetize theirs.

And those are the characteristics that produce a deterioration in the monetary order.

And that's, you know, that's what you're seeing.

You're seeing a dynamic of why countries, for example, are letting their reserves or their assets in bonds and so on go down.

And they're acquiring and have been acquiring gold, for example.

So gold is a currency.

We think of currencies as being the major fiat currency, but gold is a currency.

It's the second largest reserve currency.

And so you're seeing changes in the monetary order that are reflecting those things, somewhat like happened in the early 70s.

Oh, certainly.

I mean, you know, I think...

I'll tell you a story.

I've been trading markets since I was a kid and between my college year and going to graduate school in the summer of August 1971, I was clerking on the floor of the New York Stock Exchange and I filed markets.

And on Sunday night,

Paul Volcker and then President Nixon really, it was President Nixon, delivered the message that you're not going to get your money.