| What happens when a country mismanages its debt? In 1990, Japanese policymakers decided to deal with its debt obligations by printing a lot of money to buy bonds. They further devalued the currency by giving bondholders significantly lower interest rates than in the US. As a result, Japanese bonds lost 45% relative to US bonds and 60% relative to gold over the next few years. That had a real impact on the average Japanese worker, who lost a significant amount of buying power — and those impacts are still felt today. My new book, How Countries Go Broke: The Big Cycle, breaks it all down for you. #raydalio #principles #politics #economics |
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I’ve gotten a lot of questions on the recent Trump tariffs and their impact on the global economy. There is a belief that tariffs will bring manufacturing back to the United States, I am uncertain of that. You can learn more about why, and what the current big debt cycle the United States is going through in my new book, How Countries Go Broke: The Big Cycle.
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Can the Right and Left Agree on This?
2025-06-30
Everybody I speak with on both sides of the aisle agrees that we need to get our spending down to 3% of GDP.
But politics is standing in the way of making good decisions. The idea of compromise is out.
I think we all agree that we’re in need of a big renovation. The question is how that renovation gets done — and there’s a lot of fighting over what that renovation might look like.
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