Ray Dalio: “The World Has Gone Mad and the System Is Broken.”



Central banks have been giving cheap money to investors who have been injecting it into companies that are often unprofitable and don’t contribute to economic growth, says billionaire hedge fund manager Ray Dalio.

“The system of making capitalism work well for most people is broken,” he wrote.

The founder of Bridgewater Associates, the world’s largest hedge fund, recently put up a LinkedIn post titled: “The World Has Gone Mad and the System Is Broken.” In addition to enormous amounts of cash flowing to investors at ultra-low rates, Dalio also attacked the nation’s ballooning debt and disproportionate access to credit, which is fueling the wealth gap.

“Large government deficits exist and will almost certainly increase substantially, which will require huge amounts of more debt to be sold by governments — amounts that cannot naturally be absorbed without driving up interest rates at a time when an interest rate rise would be devastating for markets and economies because the world is so leveraged long,” Dalio wrote.

The U.S. federal deficit was $984 billion for fiscal 2019. This is a 26% increase from 2018 and the largest gap in seven years.

His post comes days after the Federal Reserve cut interest rates for a third time this year to buffer the U.S. against a slowing global economy and the ongoing U.S.-China trade war. Dalio suggests that it will ultimately fall on the central bank to buy up this debt by printing more money.

“This whole dynamic in which sound finance is being thrown out the window will continue and probably accelerate,” he wrote.

Source: CNBC

 Trader Georgi Bozhidarov

Read more:

If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy