Hedge Fund Manager Ray Dalio is not in the list of the richest people in the world at 58. On Tuesday, he declared in public: The financial system is broken, big changes are imminent.
His main reason for the claim seems to be that “money for those who are credit worthy, is free”. At the same time the money was “for those who have no money and no credit, Essentially not available”.
A paradigm shift is coming
The entrepreneurs with assets in the amount of 18.7 billion dollars:
“Because of the ‘Trickle-Down’process doesn’t work, flows to the money of the top workers and others by improving your income and your credit rating, the System is to let the capitalism work for the majority of people work well, broken.”
This Situation was “unsustainable” and could not be driven “certainly” so, “as it exists since 2008”. Dalio more:
“Therefore, I believe that the world is approaching a major paradigm shift.”
The billionaire offers no solution to the Problem, that money goes to those who are already rich – who spend it, invest it, and “drip” it down.
The implied Argument is, however, a very old – that of supply and demand. On the supply side, the Argument is that if you cut taxes and regulations, the company will be able to produce more to reduce prices, increase productivity, and to make it all the richer.
On the demand side, it is argued that the economy comes the growth of demand – especially when it comes to Overproduction. In the classical theory it is said that this demand should come from the state, but there are probably many ways, such as with demand, can be produced.
Bitcoin and crypto out of
Dalios idea that is different. He supports the so-called Modern monetary theory (MMT), which is only another Name for the Economics of the demand side. Both votes, however, agreed that the government should create the demand by investments in infrastructure and the like.
In MMT, this should be government-done – creating basically taken money out of Nothing, that then puts into the economy by building roads and the like and this money takes through taxes, fines, license fees, and the like from the economy.
MMT proponents argue that this is the way how things actually work, but in this case, your solution is, again, unclear – because if, as Dalio said, the whole current System is broken, not working the MMT.
It is a systemic Problem. The Rich behave more and more like a legislative aristocracy – in a more hierarchical System. This is a benefit to you, of course, in the first line, while you need to ensure a way that it also has other uses. Or you lose the floor.
Otherwise it remains an Opt-out as an Option – and here is Bitcoin and the financial crypto-Ecosystem come into play, which is currently being built.