‘Capital war’ possible if US bans investment in China or withholds bond payments: Ray Dalio
“Dalio said that we are in an ‘ideological civil war’ with the Chinese and that when you combine that with ‘an economic downturn in which there is the printing of money and the creation of money out of thin air,’ it creates larger issues for the U.S. economy. The biggest issue Dalio is worried about is ‘the soundness of our money. ‘You can’t continue to run deficits, sell debt or print money rather than be productive and sustain that over a period of time,’ Dalio said.”
USAGOLD note: This is precisely why some analysts are keeping a very close eye on the deteriorating relations between the U.S. and China. The situation not only carries implications for financial markets in general but for gold, the dollar and the yuan in particular. Dalio has consistently recommended gold ownership over the past few years as a hedge against a breakdown in the relationship.
Repost from 7-27-2020