Bloomberg: Ray Dalio Warns of Threat to Dollar as Reserve Currency
(Bloomberg) -- The dollar’s decades-long position as the global reserve currency is in jeopardy because of steps the U.S. has taken to support its economy during the Covid-19 pandemic, according to Ray Dalio, founder of hedge fund giant Bridgewater Associates.
While equities and gold benefited from the trillions of dollars in fiscal spending and monetary injections, those efforts are debasing the currency and have raised the possibility that the U.S. will go too far in testing the limits of government stimulus, Dalio said Tuesday in an interview with Bloomberg Television.
“There is so much debt production and debt monetization,” Dalio said.
The Bloomberg Dollar Spot Index has dropped 10% from its peak in late March as investors responded to the pandemic and efforts by central bank and government officials to contain the economic fallout. All of the world’s major developed currencies have gained against the dollar as have precious metals such as gold, silver and platinum.
Read more ....
WNU Editor: What the US government and Congress doing right now is not sustainable. If this deficit spending and debt production continues for two or three more years, the Americans can kiss-away their dollar as a reserve currency. To say that the economic and national security consequences of such an event will be profound is an understatement.
9 comments:
That's China's doing. The covid 19 is not just a health issue but as it spreads so rapidly and asymptomatic it is more so this economic bomb we are seeing. On top, my gues is that the viral load is the unspoken issue here, which makes gatherings to lethal. That's also why Fauci and others talk about that our way if life will change. Maybe Fauci is compromised, who knows, but if viral load is really the thing here, than it feels more and more man made and appears to be a first strike weapon and the opening act to WW3. I hope the Chinese didn't do this and that Fauci and the others are just compromised or were psychologically pushed through the early Chinese propaganda videos of SPRAYING(!) streets lol.. either case we seem to be at war and the Chinese -- all Chinese-- must talk and now
But then again..61% is pretty solid. No one comes even close despite all that's been happening. But the war is still on.. cultural, economic, info and maybe even kinetic soon as they seem to unleash a bio weapon on us. But again, who the fck knows.. let the evidence speak and the World decide, this is the biggest financial and human rights violation/mass murder on record, if you include the millions that will die before this is over and the millions and millions on top that will die due to food shortages in Africa but also other nations around the World.
Truly unimaginable if true
They actually have yet to produce hard evidence that the asymptomatic are spreading the disease. As with most diseases, the time when one is most contagious is when symptoms are the greatest. To say otherwise requires extraordinary proof which hasn't been presented.
The economic shutdowns and the damage caused were entirely self inflicted and the death and suffering it gas causes and will cause has far exceeded what the virus ever could have. The US has endured and continues to endure one of the most brutal economic shutdowns in the world.
I liken our response to this to a nuclear retaliation when a country is invaded, however, instead of launching nuclear weapons at the enemy our government launched the equivalent of an all out economic nuclear attack against it's own citizens while doing nothing of substance to confront the actual enemy. Then surveying the carnage and seeing that it didn't slow the enemy many of them want to launch more economic nuclear weapons against the American people!!
Total cases and deaths in the US are trending down. The conventional wisdom is this is a naturally occurring virus that escaped from a lab. If so, the Chinese wouldn't want to tell us because they likely knew how hysterically stupidly our government would behave.
Do you think a Democrat voter, who is functionally illiterate like a non-scientific college professor, understands how debt, deficit spending and reserve currency status are related?
Is such a professor has the slightest inkling of the relationship, do you think they care?
I don't.
Poster, your 3rd paragraph was a good one. We see eye to eye on that one.
Booster, keep in mind that our reaction was based on the Chinese propaganda, and lack of sharing information. If on top this truly was a man made virus there's no defense of your argument of a self inflicted wound, as or government could not for sure know what's happening. Please be intellectually honest and remember the timeline, the messaging from China and the WHO and that to this date no one was allowed to inspect the source of the outbreak. On top, we do seem to have evidence and now witness testimony by the Chinese scientist in Hong Kong who fled the country. Until you provide counter evidence, I think we were attacked under pretext with a bioweapon. And you've not addressed the viral load issue which would help to explain why even young people die, if they're exposed to high enough doses. This is quite typical for a naturally occurring virus and speaks to the man made claim. So does the dna sequences that have been released, and China still sits on some of the info we need. On top, remember the photos of the outrageous security violations in that very lab, released by the Chinese themselves a couple years back. The virus sample freezer! Then they removed everything. Come on.
Kiss me
Anon (12:47)
I'm glad we agree. The messaging on this thing at the beginning was a naturally occurring virus that escaped from a wet market. Then it switched to a naturally occurring virus that escaped from a lab. Now we're getting info that maybe, just maybe it was a bio weapon. Perhaps if it's now a bio weapon the people who orchestrated one of the most brutal economic shutdowns on earth can now justify their position. Of course if it's a bio weapon they've got to blame somebody and their China friendly so that's going to take some convoluted messaging. As people are catching on, the bio weapon claim may be all they have left.
With that said all evidence appears to be that our government doesn't think this is as serious as they are trying to tell us it is. For example, the ultimate super spreaders of the George Floyd protests and the protests are not only allowed to continue but are encouraged. Meanwhile small business owners merely trying to feed their families often face arrest, jail time, and fines.
Expounding upon the economic nuke analogy, these appear to be designed to destroy entire economies. While everyone is affected, take a look at "ground zero" being the exact spot where rhe bombs hit. In this case, whose directly targeted and how are they likely to vote? I think you can answer this.
While this is looking more and more like a manufactured crisis, we have to focus on what the government is doing not what we want them to do and plan accordingly. Bottom line: the attack on our economy by the likes of Fauci and Birx shouldn't have been a survivable event. Yet it appears we may weather this!! The merchants of death didn't account for both American ingenuity and the fact that some state and local governments While VERY BRUTAL weren't as brutal as the feds wanted them to be.
Anon (12:49)
Thank you for the reply. From where I am, the main reason for the reaction was the wildly flawed models the:experts" were working with. For example, the authorities in the county I live in (pop approx 610K) were expecting at least 100K by the end of May and THIS WAS THE BEST CASE SCENARIO!! At the time I learned of this through my contacts in thr County government. Only recently have they gone public with this. I think it a reasonable assumption that other state abd local governments were receiving similar reports. Hence many acted in good faith and did what they did. Others did not. Chinese messaging no doubt helped push it along. The propensity for our government to do stupid is legendary. So they helped stupid do that which stupid does.
We have come nowhere close to these projections. As I think reasonable to assume others were provided with similar projections, they've come nowhere close either. By mid May it should've become apparent that we were working with flawed models and that shutdown wasn't slowing the virus spread, a course correction should've taken place. Knowing what we know now as put forth by our local officials the proper course of action is a full reopening without restrictions while taking common sense approaches to protect those most vulnerable.
As for being "intellectually honest," tgr conventional wisdom by most is a naturally occurring virus escaping from a lab. Bio weapon is an extraordinary claim and evidence will need to be supplied as extraordinary claims require extraordinary proof. Bio weapon or not we have the ultimate defense in our immune systems. The appropriate response is to protect the most vulnerable while allowing herd immunity to develop for the rest.
Viral load is interesting. Naturally ti much of anything can kill, even drinking to much water to quickly can koll. If one is under 70 without co morbidities, the chances of death are "statistically zero" NOT "absolute zero."
Chance of death overall based upon my research is about .005%. It appears someone is trying to overhype this. If they now need to make it a bio weapon in order to further stoke the fear, they just may. Trying to keep China from being blamed could be a problem for them. If this is now the direction they want to go, it small be interesting to see how they go about trying to pull it off.
Post a Comment