Ray Dalio: Yuan Will be a Reserve Currency Faster Than Expected
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- čas přidán 1. 11. 2020
- Nov.02 -- Bridgewater Associates founder Ray Dalio explains the path he sees for the yuan to become a reserve currency faster than current expectations. He shared his China insights during an exclusive interview with Bloomberg's David Ingles at the Hong Kong FinTech Week.
And now China is in talks with Saudi Arabia. Interesting times.
haven't heard any updates, so prolly still using USD lol
Probably just some barter trade. Saudi give China oil, China send them toys.
@@a55tech All the news i see is saudi pricing oil sales to China in Yuan, not in usd. Where's the updates?
Even the chinese don’t want to hold yuan. That’s why ccp banned bitcoin and all crypto currencies.
The Saudi riyal is still pegged to the U.S. dollar. Until that changes, I don't see much happening between the Saudis and Chinese as the yuan also hardly fluctuates against the USD.
Yeah, lot of ppl here is expert and smart enough to earn thousands while Ray is stupid enough to earn billions haha
His fund is down 18% this year. Every average joe that bought an index fund beat him.
@@Rembd yeah he did admit it as well, so did u beat him this yr? And beat him in 30-40 yrs?
@@Rembd managing a 150b usd fund is alot harder than an average joe fund. Being down by 18% this year is already computed as part of his drawdown in risk management. Not all trades are always up each year. Usually this kind of fund managers average their earnings every 10 years to 20 years... Not all can understand that.
@@Rembd Lol. Do you have a net worth 20 billion, Kevin? Dummy.
exactly
Divided nations fall. Powerful opportunists exploit this.
I think Beijing has something on Dalio. It would make no sense for someone at his stage of life to tarnish his image.
I bet he was trapped in honey pot on one of his many visits to china. Must be pretty embarassing stuff
@@mszuser maybe it’s true. China wants to be number 1 & it’s happened 5 times already to previous empires
China is playing the role, these people are fallen in the Communist trap
@@mszuser I doubt the biggest hedge fund manager would be as gullible as your thoughts. Read his book and you'll know what he is talking
The CCP is obsessed with being "united", but that says more about China's problems than its strengths.
I love this comment statement ‘America has a random popularity contest while China runs the country like a company”
Please note that China is one of the most miserable places to live and their economy is currently struggling much more than the United States. They install nets on buildings to stop sheep from committing suicide. There are no squirrels, chipmunks or birds because the people have eaten them all.
@@f4love416 I think he's just a Falun Gong troll. No need to engage.
🖐😯🥱FAKE news🤣🤣🤣
GOLD AND SILVER ARE SAFE INVESTMENT THAN CRYPTO OR OTHER COUNTRIES CURRENCYS..PAPER AND CRYPTO CURRENCY CAN BE MANIPULATED.METALS ARE ESSENTIAL TO EVERY COUNTRY ECONOMY...
@@BoulderCoTrader what a load of crap. China is a most advanced country in the world. Level and quality of life I never seen in the world.
"Random popularity contest" what a perfect description.
If you make the world’s products, then your currency becomes the reserve currency. The USA stopped doing that with Reagan.
America is consumers
China is producers
How many companies have left China already? This will only continue over the years.
@@mgsv5297 How many companies? The tech companies like Apple still have their manufacturing there. And even if they all leave - it will be too late. China is now producing phones and cars and even aircraft carriers. And later on - they might produce Electric Cars once they're done stealing Tesla's tech. A lot of western countries now are a lot of issues (Covid)/fragmented (BLM, Brexit) or fighting local terrorists - things China either does not experience or squashed (ie HK).
@@tapunan Foxconn is leaving China they're making the move out and last i heard 70 big companies but that is just the US and doesn't include Japan, Korea, UK/Euro, Australia, etc. "China is now producing phones and cars." Their phones are inferior since they can no longer buy TSMC chips they can't compete, huawei is dying. Their cars are sh*t they only compete on cheap price and no chips means they can't challenge Tesla's self driving tech the lack of these chips will also severely impact their military. China is a joke, all talk. The only way China advances is by stealing other peoples ideas, innovations, IP. There's nothing lower in this world than a thief and that's why China will fail. F**K THE CCP.
@xox damn how
So prophetic words as we can see now in March 2022.
even more prophetic now in march of 2023...
@@kau8864 what’s happening to USD and Yuan in 2023?
Lots of countries and company would like the idea that USA cannot monitor their transactions. This is a result of USA abusing their sanction power too much. I suspect even USA companies may use the Digital Yuan to do business with USA sanctioned countries.
It may be the intent of the USA use of sanctions.
This comment aged very well.
India, China and Russia dropping the US Dollar for trade. And more countries will follow.
@@fujitsufujitsu1670 infact like a perfect wine 😂😂.
Someone who worries about the USA monitoring transactions certainly wouldn't want a far more intrusive Chinese regime monitoring transactions either.
China right now owns 10% of ARAMCO. Today they have already in place and working its digital Yuan.
Rusia and China are deffinitly decided and doing things to take out the US dolar as a World Wide currency. This takes time but so me of this days is gonna happens.
They are trying to do for a decade already. Problem is that neither Chinese nor Russians trust their local currwncy and park the money in foreign real estate as soon as they can.
Locals always know :)
@@mszuser Must be.
@@mszuser Where did u get this from? Chinese doesn't own a cent in Aramco. There was talk in 2017 to buy 5% and 2019 for a $10 billion stake but both fell through. Although Aramco as a 25% joint venture with Chinese firm NORINCO Group and Panjin Sincen to build a refinery worth around $10 billion but Aramco has suspended all investment in it this year, Aramco also has a 9 percent stake in Chinese Zhejiang Petrochemical's integrated refinery and petrochemical complex in the city of Zhoushan.
Fake news, a country can’t own assets
@Ben Louis yes, I did. Sorry.
Unfortunately I have to agree with him U.S. is so divided we cant get anything done. China doesn't have this problem.
It's easy not to have a divide when you eradicate the opposition.
Yes they do. You clear don't know much about China.
US is a Corporation dominated by the powerful American Jewish oligarchy and its military industrial complex
The other question to ask is: is it necessary to have one reserve currency and will it be just one in the future?
There are several. USD, Euro, Japan Yen, RMB, UK Pound.
Depends how it could b3 regulated...
@@ramonching7772 5 of those are basically on the same team
Trying to find out the books on his shelf.
"Gold is money. Everything else is credit" J.P Morgan
The same J.P Morgan was fined almost a $1B for spoofing the price of Gold and Silver. Programmable money is the future. #BTC #Crypto
@@mikhelBrown 😂😂😂 u fool there was a person jp Morgan who started the bank he was the biggest financer of everything from rail roads to infrastructure and also owned us steel at one point of time
He was the one who saved the banks from banking runs in 1880s u people think u are really smart but u r really fools who want to prove the world there are only right ones
@@mikhelBrown no, the man JP morgan who died long ago said that, not the bank that bears his name.
Credit is money.
@@changyingjushi8409 ok then, I'll trade you an IOU for gold coins any day of the week.
If the Yuan becomes the world’s reserve currency, China won’t be able to devalue their currency anymore. They would lose a huge advantage. Making stuff in China will become too expensive, just like it happened in America. Businesses and investment will leave
But after a long time, maybe a couple of decades, maybe even 100 years
One problem with the Yuan as international currency is that not enough is being sent out into the world (see massive current account surplus). To get around this China could do what the U.S. did with the Marshal plan with the Beld and Road initiative. But, to do that it should start lending out Yuan's more (rather than Dollars).
How about using Yuan for all direct transaction with China? www.swift.com/insights/press-releases/more-than-100-countries-are-now-using-the-rmb-for-payments-with-china-and-hong-kong
@@user-hv4ky5kt2x makes sense for exporting to China. Less so for importing from it (which is what they are known for).
@@MoneyMacro I googled about it & so many information about currency swap. Too far from my expertise. Thanks for your answer...
That's why it's so valuable.. shit gonna get real in the next two weeks and they said there is no place for the us in the deal. Shit gonna get real in the next two weeks. We are about to get real hungry
I'm particularly interested in seeing how China's move to digitalize its currency with blockchain will affect this development.
@@vinnieray6789 bet you were against ATM cards back in your day, huh.
CCP token. They are going to block chain live organs just like organic chickens.
@@vinnieray6789 Those are propaganda nonsense.
and what exactly does it change ? if u havent noticed then our money is pretty much digital these days...its more equivalent to creating govt's own paypal
they've got 330,000 tons of gold, it will be a new gold backed currency that russia and other countries will use.
Ray Dalio is the Best! Respect
In September 2017, Bridgewater announced plans to launch an investment fund in China with Chinese government's approval.
what?
@@aryankushwaha1964 that’s why ray dalio said that. You need to say something good about china if u want to do business with them. if not, they will just ban you. Then people like Ray will fool those stupid mf bithes.
i know it coz im a chinese, im risking myself to tell u the truth, believe it or not
Much of Wallstreet are opening shops in China now after the financial deregulation.
@@aryankushwaha1964 Bridgewater is a huge fund owned by Ray Dalio.
I am from Richmond, South West London and it's Good to see how you guys came up here showing appreciation to Mrs Nancy this is the kind of information we don't get from most CZcamsrs.
Don't worry china will set up its digital Yuan as a international currency money on february next year.
.. lmao what a dmbass
The US reserve currency status isn’t just about international trade-it has a lot to do with OPEC price standardization being set in US Dollars.
Saudis are also taking petroyuan, which, btw, is backed by and directly convertible to gold. Google it.
@@georgedang449 USD accounts for almost 65% of FX Reserves. Yuan accounts for just over 1%. With the US long standing strategic relationship with the Saudis and shifting ally dynamics in the Middle East this isn’t about to change. China and Russia will cozy up with Iran and the west is trying to build an Arab coalition.
@@jacobsykes8467 I agree. I don't think China ever comes close to anything like this. Nonsense talk.
@@jacobsykes8467 The latest figure I can find now places the USD's share of global reserves at 59.15% (this was Q3 2021). The RMB has risen to over 3%. The issue for the US is not that the RMB will replace the USD within the next 10 or 20 years, but that the world is steadily moving away from the USD. Whether the world replaces the USD with currency swaps, the Euro, the Yen, or other arrangements is irrelevant.
Biden's latest move - weaponizing the USD against Russia - will simply accelerate that shift as countries outside North America and Europe seek to reduce their exposure to the now unreliable USD. China is already buying Russian oil with RMB, and many analysts expect Russia to make purchases of Russian energy dependent on the Ruble or other non-USD currencies soon. It is only a matter of time before others (particularly Iran and Venuzuela) follow suit, with OPEC eventually hopping on board.
But their one fundamental you haven't touched on and that is trust , and the United States now just can't be trusted , and all this crap about the RMB being only one % won't matter because of the Chinese CIPS system , a lot of people on this page don't realise that the Chinese are already the BIGGEST lender on the planet , their economy is well over thirty % bigger than that of the US by PPP , so in truth is far more powerful , it doesn't matter how you fiddle the figures China is the world leader and other countries know it !!!
This is coming to fruition quickly
I appreciate it much , thanks for the information..
This aged well
That's right! nothing last forever. This is the part of the monetary policy life cycle. Every financial system will reach its' peak due to 3 reasons. 1. the debt amount became a negative factor of confidence in the legal tender. 2. the government entity became less creditable due to lack of talents and governance/ missed governance and manage. 3. 😜top secret.
3. Weaponizing their money
So, what's the time frame you are looking at? next 5 years? 20 years? 50?
@@BirdylocksoMy friend, there isn't enough evidence to clearly define a specific time frame for this to happen. But I can tell you this. Eventually, there will be a universal global currency that peg to all the currencies of each existing recognized countries. Before this happen, region/group countries/continents will establish their joint currency to stabilize prices that under developed countries are unable to do so by themself. Similar to the creation of Euro. You will see this in ASEAN, Africa nations, etc....In another word, a global currency establish for the human race. I could be wrong, but it is more effect to establish the monetary foundation this way and prevent monetary policy failure plus headache.
What percentage of the world's reserve currency? The Euro and the Yen are large percentages, however I'm not convinced there will be one larger reserve currency for a while. The world could become more regionalized
Bingo!
Nah it would be more you need all the different currencies as a reserve the RMB the US dollar and Euro will be necessary to hold as well as the Yen etc.
It's quite possible it's no reserve currency. Just a lower level of dollars, higher level of others.
A year later, much has happened. I'm still not convinced that there will be one reserve currency.
I can see the Yuan getting to 15-25%. It will be hard pressed to go further.
what do you think are the chances of gold playing a role in this?
So are there any easy "early investments" one can make to take advantage of this, and make good returns, like investing in Amazon in the late 90s? Between my job, social responsibilities, etc, I will not be learning currency exchange in any detail.
So can one buy yuan with US dollars and receive the currency here in the US?
The reality is that the DCBC yuan will only be permitted to circulate within the PRC, the offshore euroyuan will most likely come to service PRC corporate activity in foreign jurisdictions, hence HK will probably become the defacto engine of this trade and credit circulation into the belt & road informal 'empire' markets. HK therefore becomes a critically indispensable territory of PRC global foreign policy execution.
You have to understand Adam China doesn't want the it's currency to be a reserve currency. For now the Chinese Yuan is only for Chinese living in China and no one else. Even if your country has a trade surplus with China they strictly control what you can and can't buy and how you can buy within China so the currency is practically useless. The Chinese government strictly control inflation within the country that way.
brics five country s moving away from the dollar
BRICS crashed and burned just years after its creation. Apart from the fact each member suffered serious economic issues over the last decade, expect (maybe) China which never stoped growing above 6%. India is being excluded from B&R trade routes, and is having full on border disputes with China. Brazil, still in total economic collapse, is happy to sell oil to China, but that is where the relationship ends. South Africa is and has been in economic free-fall for almost the last ten years .. and its once great continental influence is being supplanted by the new emerging great power of Nigeria. The only potential and truly strategic alliance would be with Russia, but since Russia’s most vulnerable boarder is with China this tenuous relation will most likely only be held together by hate of the USA.
The USA has so many things going for it.... the only thing that could bring it down is itself.... and sadly it is on track to do this.
Very informative!🇹🇩🇨🇦
which book does.he.referring in the beginning?
principal of success?
I have a feeling Ray Dalio is the only one thinking that.
I had to think about this a little before hitting on the answer. The reserve world currency doesn't go to the biggest GDP, but to the biggest consumer. The reason the US Dollar is the world reserve currency is because it is the world's biggest customer. China is Europe's biggest trading partner, but it is actually the EU's biggest supplier. The US is still the EU's biggest customer so it gets paid in Dollars. Then it must decide whether to pay it's supplier, China, with Dollars or Euros. In any case, Europe is going to be flush with Dollars not Yuan.
Among other things, the dollar is strong because those who manage to save excess dollars will buy US stocks, real estate, and bonds. Chinese government is also a customer and has excess money because it does not spend on its people.
Arguably being the biggest supplier is more important than being the biggest consumer. The key is controlling the recycling of the debt
The consumer doesn't dictate which currency to use; ask that the Saudis!
@@sakariasheikh9739 No, the banks determine the currency of the market. You can sign a contract with individual suppliers to buy in whatever currency you want, but when buying off an open market managed by a collection of international banks, you must use the currency the banks have chosen.
@@FOLIPE You sell to the US and have dollars what currency will you want to use to buy from your supplier?
Well done.
Will China use the current American sanctions regime to push making the Yuan an exchange currency between countries that it trades with to replace the Dollar?
I don't know who needs to hear this, you've got to stop saving money. Invest some part of it, if you really want financial freedom.
Invest in bitcoin, gold, silver, buy stock, forex market, commodities. Just invest and save yourself.
@nancy lovely
Hey dude, this is 2020. People who aren't even traders make money from the crypto and forex markets and moreover there are already financial analysts and trading experts(PhDs) who have shelled out theories and ideas for years on how bit coin technically grows
@@larryhenry5689 Exactly, Very Good point ✌🏻
If you think you're too lazy to trade or learn how to trade, just know I have some friends who invest in a platform where and experts devotes their time and help them trade and they get paid profit every week.
@@d_ken My trading mentor; Dr.Mrs Lydia Virginia Woodruff runs and investment platform like that, I paid in €33,500 just last week though its not the first time, and I got a paid profit of €79,600. It's been an amazing experience with her
yuan is already a reserve currency, but only accounts for a small percentage of global currency reserve.
2% bro
@@nts713 3% now. Meanwhile the US dropped to 59.15%. If I were American, I'd be more concerned with the steady drop of the USD's share of global reserves than the RMB's small gains.
We're here ☕😁👍
anyone knows the name of that black color book behind him?
There are more dollars outside of the US. As the US deficit becomes rapidly immense by printing more money, inflation increases and it devaluates the dollars. The dollars become unstable!
if you think US money printing is bad take a look at chinese money printing is, it's an exponential graphic function since 2008. I wonder what happened in 2008 they're hiding by printing so much cash
The yuan as the reserve currency, god help the world and they dont have to fire one shot to win.
thats a good thing no better than endless wars.
That's why they don't want any wars and keep Xi JinPing speaks of world peace: they will win by default. To upset that the US, traditionally a war boosted economy, would need to start conflicts. The dilemma is unlike Iraq, Nicaragua, the Balkans, etc... China is a beast of a different capacity. Easy pickings would be Iran but any conflict now would just fuel the theory of the US being a warmonger economy and China will look better to the developing world as an alternative (China's already presenting itself as an IMF and World Bank alternative). I do not think the US will accept second fiddle, nor should it.
@@ericulric223 There is already an alternative bank under the brics called new something bank. Headquartered in Shanghai. They have some 500 billion
@@knockhello2604 Good to know. Thanks.
Totally agree.
The question I would ask about debt is about who holds the debt. Here in the USA, much of our debt is held by foriegn entities, that has to make a difference
Only like 15% is owned by foreigners
@@mikehawk4856 NO, it's 37% Please google it, you can go to the US govt site that shows you who owns our debt Good luck.
I love China! I look forward to when China is the undisputed leader in economics, technology, culture, military, and politics. Anyone who thinks incumbents are invincible and are here to stay forever, and that the US dollar is immortal...just look at the British Pound, the Dutch Gilder. The Portuguese, Spanish, Dutch, French, and British all had the most popular reserve currency of the western hemisphere for about 100 years each. Just ask the Romans from 1800 years ago when they decided to inflate and dilute their currency by putting less gold into their coins. Also, keep in mind that reserve currency status is usually the last characteristic to decline when an empire or world power declines as a whole. The British pound stuck around for a few more decades after the US economy had already surpassed the British economy before the turn of the 20th century. The final nail in the coffin for the British Pound was the Suez Canal Crisis after Eisenhower disagreed with Anthony Eden's actions and the US sold off British debt securities. They linger on for a bit longer because it takes time for all the cheap liquidity/money sloshing around in the world economy that needs to be squeezed down before the new top dog currency moves up the food chain.
You love being a slave having every aspect of your life being controlled ?🤡
china doesnt want to have their currency float. and even if that happens and deep treasury market , do they want trade deficits and let go their manufacturing and exports?
Time is over for that policy, now the USD should come by the investment in Chineses securities.
@@outlander4502 how are you going to do that? Lol ..convert you dollars to yuan which is controlled by PBOC or take on currency risk between China and US. That’s the whole point for world to get off USD..the dollar is the world reserve currency and also been weaponized. What do you China have done with the Silk Road ? Same thing lol
@@outlander4502 even if your trust Chinese companies books ..they go bankrupt, what court of law will you recover your $? Lol
@@outlander4502 as much as I hate the USD, yuan as a reserve currency is even worst. You run the risk of Chinese authoritarian policies with securities priced in local currency. It’s a trap
@@outlander4502 also when you say time is over for that policy...i assume its the US account / trade deficit you are talking about? outside of the eurodollar, world needs dollars as reserve/trade currency so basically US consumers export dollars to china. if that is reversed then the chinese will be heavy in consumer debt and trade/ acct deficits....you are counter arguing something that in self destructing if china give US the finger and become a consumption base economy
Positive capital LIQUIDITY FLOW IS VERY GOOD NEWS...TY...GOOD ANALYSIS 👍
what are "other financial assets"? Crypto?
precious metals. stocks (in good companies that'll pay out dividends). crypto currency (only in very small amounts)
Chinese don't want Yuan to become reserve currency.
To back Up its standard they need a strong & mercyless military, working directly under CB to push their worthless currency throughout the world.
Chinese are getting that in time; both in worth (backed by Gold) and without needless military interventions.
not enough gold exist to back a world currency
Grandpa is getting ready to miss another rally.
He's in good company with all the rioters on US streets
In the process as we speak
Interesting to see today.....
so...the "rich" are communist when it serves "them" best?
This is why I am an inflationist.
International boarders to hide from Keynesian and pushing rich people to search for innovation is an international sin. Communists and Capitalists alike should be angered by this fact.
How can you have an Reserve Currency with no international bond market. When was the last time you heard of anyone saying they want to invest in the Chinese bond market? I'm really wondering this and not trying to be a smart ass.
I will be the first person reserve Yuan for sure. 🇰🇷🇰🇷🇰🇷
Has there been a change in reserve currency without a war?
Covid is that war and if trump doesnt get reelected usa loses BIG
As world reserve currency, it’s value has to be pretty high right? Is it desirable for China to have a highly valuable currency? Doesn’t it hurt exports?
"High" is completely irrelevant, just stable.
Run to bitcoin, the only hard asset
Can someone explain rem mb or at least the correct spelling so that I may research it? Thank you 🙏🏼
YES!!!! Hello YUAN welcome to the reserve currency world!
Ray Dalio just goes on TV to pump out his positions by trying to change public opinion. we don't know what he's actually doing behind the scenes with own money
@Gringo Sinting Ofcouse WE KNOW! whalewisdom.com/filer/bridgewater-associates-inc#tabholdings_tab_link
Ray Dalio got fired because he lost money for his firm during the biggest bull run in the history of the stock market. Ray belongs in a classroom and not in the real trading world💯
@@marcsunethomsen7697 This will only show long positions, meaning they could be 3x short the actual position shown but the 13f would lead you to believe they're very bullish.
A 13f also won't show you options or any other derivatives so these long equity positions are meaningless without full context.
look folks....what bloombery has tl say takes it with a pinch of salt. their guests; employees all vested interest lot....they are paid millions by doing g sweet talk for their customers on their shows
LOL it's bridgewater. Everything is public for christ sake...
Dollar is being shorted very quickly
yuan is not gonna to be reserve currency and dollar will stand, period.
@@joshua7225 what makes you so certain? There's nothing backing the US dollar anymore. We gained reserve status bc we had a gold backed currency and we had checks and balances. We held democratic elections and we didn't abuse power. That's all done..period
@@joshua7225 wrong. China's government did not inflate it's balance sheet with trillions of dollars of quantitative easing because their economy remained strong relative to the rest of the world . Chinese government 10-year bonds are still paying around 3%, while U.S. 10-year treasuries are paying 0.86%. Countries and institutions around the world are flocking to buy Chinese debt. There are two conditions to meet in order to upset the reserve currency.
1. Losing faith in the reserve currency's government to pay back their debt.
2. An alternative currency that meets the reserve currency criteria.
The Yuan is quickly meeting those standards, and there is already a shift towards the yuan. Look at the USD/Yuan exchange rate in the past few months. The results are quite startling and no one is talking about it.
@@bishbad7131 They don’t dare to get quantitative easing because their housing market will fall. Just like 2018 when they watched hundreds of firms leaders go bankruptcy while doing nothing.
@@bishbad7131 u have no idea about economy, all u have is misconception and illusion
An year later, it seems like that it’s gonna happen even faster than predicted!
អរគុណ
Can someone help me understand the part where Ray explains that the US's debt issue in its own currency is a problem but when asked about China's debt issue, Ray says as long as its in its own currency you can write it down over time and it won't be a problem? Seems like similar situations to me.
US interest rate at 0, large deficits and more to come, and overinflated balance sheet is the difference maker
Yes similar. Both governments can manage each of their domestic debt situation. Only difference is that the USD is internationalized. And CNY isnt. So they cant easily tap global markets and sovereigns for raising capital
America - $21 trillion
China - $5.4 trillion
Their debt is a quarter as bad as ours on paper, but in reality, it's incomparable. Debt doesn't exist in a vacuum. Look at it this way, how "bad" your personal debt is, depends on your asset value and your income. For example, if you have a low interest mortgage, but you also have investments that return far higher yield than the mortgage rate you're paying, and your investment worth is higher than money owned on mortgage, are you really in debt? The same applies to China. Firstly, their government's liquid asset holding/foreign reserves are bigger than their debt - so in theory, they can pay their debt off anytime they wish, and be debt free. They don't, because they can borrow at a lower rate than their yield from their investments - they borrow to make money. We, on the other hand, have no such liquid assets/investments that we can cash out (unless you want to liquidate permanent assets like national forest reserves, etc). Worse, we don't have investments, only expenditures. The US government do not make money in the traditional sense, only tax people. And that tax falls mostly on the middle class, who don't have much money to give. Trump paid $750 in taxes due to loopholes. China's tax code is simple, too simple to contain loopholes, so most of the taxes are paid by corporates and the rich despite lower rate on paper, and bottom 80% of the population paying zero payroll tax. More importantly, tax isn't their only source of income. They own many fantastically profitable resource based businesses (oil, rare earth metals, etc) that generate income and by design have little competition. They also cap their spending to sustainable levels in ways that we don't - our military spending is higher than the total of the next 10 countries, including China, combined. They have the assets, and the income to sustain their debt, or pay it off in lump sum if they ever decide to. The only way we can pay the interest on our debt is by borrowing more. Think - an unemployed guy, with no income, sink deeper and deeper into debt.
Fiat is a big ponzi, the only money I want is Bitcoin. Seriously.
Absolutely
Good on ya!
@john lou Right and how is it trash?
@john lou yes think of all the fools that bought early and made millions. Cashed out and can now exchange for gold cash or apples.
What a bunch of morons!!
Bitcoin is also a Ponzi
Accurate prediction.Cheers
Obviusly it will be.
Yuan and rembi have been a reserve currency in the sdr basket for years , to say that it will be the reserve currency aka #1 currency, good luck the US dollar will fall 20% but will still be the reserve currency
Haha you believe that
@@AKumar528 do u
Dalio is textbook-based guy. He has been wrong many times. Reaganomics started this bit it will take a long time
Lol. He has a net worth 20 billion, what about you?!
@@raytang1867 lol.. pathetic when someone takes ownership of someone else’s accomplishments, question you should be asking are you worth more than me.
He's right damn so what do we do
Is he saying that the Federal Reserve is moving to China in the near future?
Brought to you by Bloomberg and Dalio - no conflict of interest there.
Ray would rather own Chinese bonds than US bonds.
He is crazy.
Talk is cheap
I'm starting to think he qualifies as a trader.
@@joshuaosorio3884 lol
Maybe. Let's see how big his portfolio can get next month. lol
Nobody cares for us or any country everyone is nationlists until that country is growing money matters from where ever it comes
All those europeans left Europe to capture America and now there generations says we r Americans that same thing will happen if some other countries starting growing at a much higher pace at the end humans go where money goes
Can't be more true.
Wow...so fast this is coming to pass
Ray Dalio should change his citizenship to Chinese citizen even though it is hard to apply Chinese citizenship for foreigners, I am sure he will get it quite easy because he is a billionaire.
The most he can get is a permanent green card. no foreigners can get Chinese citizenship unless they got both Chinese parents and a great contribution to China.
He’s one of the hypocrite elites that have been given shit tons of this newly printed money and then spent it all in China..
Lol why g8ve up rights and diverse culture for a nightmare dystopia polluted and pocerty ridden like china. No one wants to live there but the brainwashed
Why, you can't handle the truth
The reason world trade is in USD is legal certainty. How is the legal certainty in China? I think the UK after Brexit still will serve as a safe haven because of its legal system.
Before Businesses in UK and US ruined China (Opium wars), China had the best laws in the world in regard to safety of foreign wealth. Foreigners in China was then protected by a law which made the state guarantee any loss of wealth during visit to the country.
You have no idea what u r talking about.
How the hell will Chinese money be the next reserve currency when you can't even get any?
He is right.
I'd much rather own Indian bonds Ray....younger demographic than China
Currency is trust. Do we trust the American population ? Or will they totally loose their mind due to religion and conspiracies ?
Or to people changing gender as they feel, or demanding for reparations, demanding government to support them, or making a party their religion.
@@torta122 US government have always supported people - the rich. Back in the «good old days», they also supported poor americans with education.
@@ellengran6814 agree, both parties have supported the rich, just look at the candidate who’s getting the most money from corporations this time. However, among those rich, there are hard working job creators. Always easy to antagonize them. Poor students still get help, one of the problems is the poor career choices they make. Social sciences do not innovate or create manufacturing jobs. The middle class, caught in between the never ending money of the elite and the never ending financial aid for the poor, is now stuck with millions in loans. In the meanwhile, you have teacher unions financing politicians that know the real demand for jobs is at the technical level and not college.
@@torta122 Right now, it's the job killers we should be worrying about.
Ministry of finance must have a virtual equity bank for adjustments.
Monopoly money is the future
How can it become a reserve currency when it is not even freely tradeable-what a joke!
Butthurt
@@RaulGonzalez-rs1be No just trying to use logic. A reserve currency must be freely tradable
This age well.
but the Chinese yuan is a reserve since the year 2016.. he sure means one of the major currency reserve
Thanks DRUMPF
RMB cannot become reserve currency for the reason China has trade surplus with almost all countries, if they stop using USD, all countries currency will start getting accumulated in China and not the other way around, then all countries can just print as much paper as possible and dump on China, this is the reason they haven’t stopped using USD, else they would have made currency swap agreements with most of the countries.
Is Dalio invested in the stocks of the Chinese companies building their concentration camps or their Orwellian panopticon technology?
Like the "'west"' is any better.
THATS WHAT I SAY AS WELL. THE DEBT DEPENDS IF IT IS FOREIGN OR DOMESTIC. CHINA HAS DOMESTIC DEBT WHICH IS OKAY.
Wow
No way, you don't know whats wrong with China, live and do business in China for a year then you know. I am Chinese by the way.
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What you are either not seeing or mentioning is the disruptive role of technology on the idea of money on a global scale.
State actors will still issue their own currency but a global community now has a choice between state issued or independent money besides gold.
The global currency will not be issued by a state going forward.
Like there is division between church and state and that being best for people.
There will be a division be money and state for healthy societies of the future.
im not learning chinese as a second language im learning spanish..so i will speak english and spanish but not chinese but hey working on learning spanish still takes effort and work..i did not accept a bitcoin reward for it either since i dont like digital currency..also instead of buying bitcoin i have been buying silver. i choose spanish language to learn rather than italian or french or german or chinese...the two languages to rule the world will be english and spanish not just english but also spanish.
Ray Dalio has clearly been spending too much time in China.
Michael Pettis is a better person to listen to when it comes to understanding the Chinese economy.
Signs the Chinese economy is mostly bloat and not substance:
- Almost zero high tech champions. You could mention Huawei but the fact that an executive order crippled the company tells you how much of a lightweight it was.
- China's financial markets are closed, they don't have a free floating, fully convertible currency. It's like this because they cannot afford to open their system to the outside world. There would be massive capital flight and the chinese would lose the ability to keep debt under control.
- look at the fortune 500 companies. All chinese companies on that list are state owned enterprises; inefficient, non-productive, non-innovative entities. compare that to the american system.
- china's yuan will not be the reserve currency simply as a result of the size of the chinese economy. there has to be trust, institutions backed up by a powerful military. china, for now, has non of that.
I'm an Indian, not a China fan.
But in your blind hatred of China,, you have given all wrong reasons.
China does have a thriving tech sector and a big military.
Capital flight is a risk too.
Their state machinery has already beaten others. It's not a fundamental truth that a state based company will be beaten by a Western democracy one. Otherwise, China wouldn't be a manufacturing superpower today.
The structural issues with China are different. Their per capita is still low. Wealth per capita is lower. Dictatorships can lead to poor decision making etc
Same old tired mindset!
This guy is becoming old and crazy
😳
How do we trust the yuna
Yuan
Bitcoin is the future of reserve of money