How Government Debt Reduces Your Buying Power
2025-07-03
History tells us the preferred path for government policymakers trying to deal with too much debt is lowering interest rates and devaluing the currency the debt is denominated in.
Doing this is a very hidden way of reducing wealth, because as your currency goes down, it makes it look like other things are going up. But despite the downsides, this wealth shrinkage and reduction in buying power is favored by policy makers precisely because its impacts are less obvious than the alternatives.
At such times, you should expect interest rates and the currency’s value to fall.
#debt #raydalio
Ray Dalio on Why the U.S. Must Restructure Global Trade Deals
2025-06-17
We’re entering a period of history where countries must be much more self-sufficient.
Not just because of the debt and trade issues — and those imbalances are unsustainable — but also because of security.
With today’s geopolitical instability, a country like the U.S. can’t afford to be be dependent on imports from countries like China.
As a result, restructuring our trade relationships is critical and necessary.
At least, that’s what it looks like through my eyes. I’m curious to hear if you agree.
#raydalio #howcountriesgobroke #geopolitics #trade
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