Zero Hedge: “Cash is, and will continue to be, trash,” is how Bridgewater founder Ray Dalio sums up the future for Americans (and for that point the rest of the fiat-sponsored world), but in his latest letter, he warns that amid the mad money priting and fiscally-enabled inflation, bonds may also be ‘trash’… and in fact any US-dollar-denominated asset.
“The economics of investing in bonds (and most financial assets) has become stupid,” he said in his latest post on LinkedIn.
“Rather than get paid less than inflation why not instead buy stuff – any stuff – that will equal inflation or better?”
The charts below that go back to 1900 show these things – real bond yields, nominal bond yields, and nominal/real cash rates for the US, Europe, and Japan.
As Dalio has explained over the previous few years the credit/debt cycle is only one of the three really big cycles… Read More