Serious Jialat! Those holding cash will die cock stand!

[Pinkieslut]

Ray Dalio warns that soaring U.S. inflation is eroding wealth—especially if you hold cash​

'There isn’t an individual, organization, country, or empire that hasn’t failed when it lost its buying power.'​

November 11, 2021 11:56 PM EST
Ray Dalio sounded the alarm bell on Thursday after inflation in the U.S. surged to the highest level since 1990 and warned his followers that rising portfolio values don’t actually signify increasing wealth.

“Some people make the mistake of thinking that they are getting richer because they are seeing their assets go up in price without seeing how their buying power is being eroded,” Dalio wrote in a post on LinkedIn. “The ones most hurt are those who have their money in cash.”

Dalio, the billionaire founder of Bridgewater Associates, has long been known for his view that there are better assets to hold than cash amid central bank money printing. In periods of rising prices, he says it’s actually more important to look at what you can buy with that money.



“When a lot of money and credit are created, they go down in value, so having more money won’t necessarily give one more wealth or buying power,” Dalio wrote, adding that real wealth becomes a function of production capacity over time. “Printing money and giving it away won’t make us wealthier if the money isn’t directed to raise productivity.”

Dalio had a firm warning for the U.S. and said it would be important to keep the implications from policy developments in mind.

“There isn’t an individual, organization, country, or empire that hasn’t failed when it lost its buying power,” he wrote. “The United States now is spending a lot more money than it’s earning and paying for it by printing money that is being devalued. To improve we have to raise productivity and cooperation. Right now we are on the wrong path.”

 

[rodent2005]

Let's go Brandon!

 

[glockman]

Ray Dalio Says ‘Cash Is Trash’ and Makes the Case for Crypto

By Donald Moore and Katherine Burton
15 September 2021, 11:24 pm SGT Updated on 16 September 2021, 12:21 am SGT

• Bridgewater’s Pure Alpha II Fund has gained 1.4% this year
• Dalio says Cathie Wood wrong about 10-fold increase in Bitcoin

Ray Dalio Photographer: Patrick T. Fallon/Bloomberg

Follow @crypto Twitter for the latest news.​

Ray Dalio warned that investors shouldn’t become too reliant on cash and that while he owns some Bitcoin there’s a danger that governments could destroy the crypto market.



“First, know cash is trash, so don’t keep it in cash,” Dalio, the founder of $150 billion Bridgewater Associates, told CNBC Wednesday.

Dalio, 72, who has a $15.6 billion fortune, according to the Bloomberg Billionaires Index, said he has some money invested in Bitcoin, but it’s a small percentage of his investment in gold, which in turn is a small percentage of his other assets.

The hedge fund billionaire said that governments don’t want cryptocurrency to succeed, but that doesn’t mean investors shouldn’t diversify.



Bitcoin, the largest digital currency, has jumped more than 60% this year, but has come under increased scrutiny from regulators concerned about how retail investors are engaged with cryptocurrencies.

“At the end of the day if it’s really successful, they’ll kill it,” Dalio said. “But that doesn’t mean it doesn’t have a place.”

Later in the day at the SALT conference in New York, Dalio cast doubt on the prediction earlier this week by Ark Investment Management’s Cathie Wood that Bitcoin will increase 10-fold in five years, saying that “doesn’t make sense to me.”

Bridgewater’s Pure Alpha II hedge fund has gained 1.4% this year through August. The firm manages $105 billion in hedge fund assets.
(Updates with SALT conference in penultimate paragraph, hedge fund performance in last.)

https://www.bloomberg.com/news/arti...s-cash-is-trash-and-makes-the-case-for-crypto