Billionaire Ray Dalio says the US is at the beginning of a debt crisis - and warned worse times are ahead for the economy.
"In
my opinion, we are at the beginning of a very classic late, big cycle
debt crisis, when the supply-demand gap, when you are producing too much
debt and have a shortage of buyers,"
"What's happening now, as
we have to sell all this debt ($1.6 trillion), do you have enough
buyers?" he said. "When I look at the supply-demand issue for that debt,
there's a lot of debt, it has to be bought and has to have a high
enough interest rate," the Bridgewater founder added.
Dalio was
building on the recent debt-ceiling bill passed by Congress, and
President Joe Biden. In order to pad out its cash reserve, the Treasury
department has already announced plans to issue $1.6 trillion in T-bills
this year until the end of 2023.
"When one looks at the buyers, there appears to be a significant shortage of the buyers for that government debt. " Dalio said.
De-dollarization
will hasten the demise of the US, that's for sure. Americans are
feeling dreadful about the looming dark prospects.
Anonymous
PS. All American cronies, semi colonies would be coerced to buy the debt. The balance the Fed would buy up. Left pocket, right pocket. Who are the Americans kidding? Just print and print and kick the can further down the road.
8 comments:
Sinkieland would be most happy to buy americunt debt..the use it to pay for more F35 toys..botak would also be very happy to sign on the bill for the purchase.
Very worried as Singapore is holding US$194.9 billion in US Treasurys as at end of March 2023, up from US$189.9 billion at end-February.
Singapore is currently the 14th largest holder of US Treasurys.
Who is botak?
botak is shining head next president lah
Buying F35 does not need presidential approval lar
Don't worry for Singapore. The Americans would not coerce or twist Singapore's arms or influence Singapore to buy risky American bonds. Singapore willingly want to buy more, just like willingly dumping billions into the most risky Indian market. Because our super talents, foreign and locals know what they are doing. It is all for the long term, when they are no longer around to see the results.
Never mind, the Fed will buy those debts. The Treasury issued the Bonds, the Fed can print the toilet papers to buy those treasuries, and everything is fine. This fairy tale can never end.
Janet Yellen and Jerome Powell are putting on a fantastic show to steady the ship.
But in the end, even the unsinkable Titanic sank, lock stock and barrel. So, who is lying?
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