Ray Dalio claims that Trump wants to devalue the dollar to ease debt burdens, while Powell aims to maintain its value. This tension reflects broader monetary policy debates, with economic indicators suggesting an easy money environment, despite a strong stock market.
Current market signals show a 5% decline in the dollar against major currencies and a 45% drop against Bitcoin. Although unemployment remains low at 4.1%, the tech sector thrives while real estate struggles, indicating a split economic landscape.
Dalio warns that risks are increasing due to unresolved debt and geopolitical issues. He suggests that true monetary discipline is unlikely until inflation becomes acute, advising investors to brace for potential declines in the dollar and real interest rates.
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