Ray Dalio, billionaire and founding father of Bridgewater Associates LP, speaks throughout the Institute of Worldwide Finance (IIF) annual membersh
Ray Dalio, billionaire and founding father of Bridgewater Associates LP, speaks throughout the Institute of Worldwide Finance (IIF) annual membership assembly in Washington, D.C., U.S., on Friday, Oct. 18, 2019.
Al Drago | Bloomberg | Getty Photographs
Central banks have been giving low-cost cash to traders who’ve been injecting it into corporations which can be usually unprofitable and do not contribute to financial progress, says billionaire hedge fund supervisor Ray Dalio.
“The system of constructing capitalism work properly for most individuals is damaged,” he wrote.
The founding father of Bridgewater Associates, the world’s largest hedge fund, not too long ago put up a LinkedIn post titled: “The World Has Gone Mad and the System Is Damaged.” Along with huge quantities of money flowing to traders at ultra-low charges, Dalio additionally attacked the nation’s ballooning debt and disproportionate entry to credit score, which is fueling the wealth hole.
“Massive authorities deficits exist and can virtually actually enhance considerably, which would require enormous quantities of extra debt to be bought by governments — quantities that can’t naturally be absorbed with out driving up rates of interest at a time when an rate of interest rise could be devastating for markets and economies as a result of the world is so leveraged lengthy,” Dalio wrote.
The U.S. federal deficit was $984 billion for fiscal 2019. It is a 26% enhance from 2018 and…