Billionaire investor Ray Dalio believes that the US government will turn the money printers back on to save the country from defaulting on its massive debt.
In a recent interview with YouTuber Chris Williamson, Dalio says that the US government will likely resort to currency debasement to partially pay off its immense $31.45 trillion national debt.
According to Dalio, the Federal Reserve and its tight monetary policies have put the country in a position where the government must introduce a fresh round of fiscal stimulus to jump start the economy and keep the US from defaulting.
“So I think you’re in the part of the cycle where you’ve had the tightening and then the dominoes are beginning to fall. And I think that that’s going to produce more problems.
I think when it comes down to it, there’s just too much debt, and we’re adding to it too quickly… Either that debt will be paid off with hard money, in which case there’s not much printing and so on, or it will be paid off with printing a lot of money to make it easier to pay off.
I think in the end, it’s always the case that they print a lot of money in and make it easier to pay off, but you have the reduced value of money.”
Should the US government take the route of devaluing the dollar, Dalio says the country could enter a period of stagflation, which is an environment marked by high inflation and economic stagnation.
IDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Andrush