Ray Dalio Admits QE Won’t Work, But Asks For More Anyway



Zero Hedge: “While not as dire as his Davos forecast, in which he warned that “if assets remain correlated and things continue to move in the “wrong” direction, “there’ll be a depression”, earlier today Ray Dalio released a new Op-Ed in the FT in which the manager of the world’s largest hedge fund (excluding Apple’s Breitburn of course), once again implores the Fed and other central banks to stop tightening and boost global easing.

The reason for this is what while Dalio admits the U.S. business cycle, now in its seventh year, reflects a need to tighten monetary conditions and hike rates, the bigger threat is the long-term debt supercycle, as according to Dalio we are “near the end of the expansion phase of a long-term debt cycle, which typically lasts about 50 to 75 years.”

Opinion: Ray Dalio manages a $154 billion hedge fund, one of the largest in the US. Dalio is saying what we have been saying for 5 years:

  • Manufacturing money (QE) is akin to counterfeit
  • Manufacturing money creates a mountain of debt
  • Manufacturing money may lead to a depression

But here is what Ray Dalio didn’t say: Manufactured money is the most obvious precursor to the Rider on the Black Horse of Revelation 6:5-6.

“See Headline “Is Federal Reserve’s Next Move Rate Cut?” @ BPTnews.org