Dalio Says STAGFLATION

Dalio Says STAGFLATION

Ray Dalio discusses how the problem with the US’s current debt crisis is that the central banks and the commercial banks will have solvency concerns due to government debt holdings. He highlights the trade-off between raising the debt-to-income ratio and balancing interest rates for creditors rather than debtors. He adds that the US is currently facing more than just a classic recession, as the unemployment rate does not necessarily measure wealth transfer and higher wage gauges. Dalio disagrees that inflation can come back down on its own without higher real interest rates.