Ray Dalio, who predicted the market accident in 2008, warns that US debt risks are going further than creditworthiness; Here's why | Einsmark news

Ray Dalio warned that US debt risks are going beyond credit ratings amid the US government’s increasing debt in the current global economic scenario. The billionaire founder of one of the world’s largest hedge funds said the US debt downgrade, you should know that credit ratings underestimate credit risks, because it only assesses the risk of government that does not pay its debt. ‘This does not include the greater risk that the countries in debt will push money to pay their debt, causing effects to suffer losses as a result of the reduced value of the money they get (rather than from the reduced amount of money they get). Say differently, because those who care about the value of their money, the risks to US government debt are a greater than a former judge. Dalio said last month that US President Donald Trump’s trade war brought the United States near the recession. He was asked about NBC’s “Meet the Press” if he thinks that the world’s largest economy could fall into a recession, usually as a significant decline in production, due to a trade war that has caused global markets over the past few weeks. The founder of the Bridgewater Associates said: “I think we are now at a decision -making point and are very close to a recession.” The tariff plan contains duties on dozens of countries, but the planned initial dates for many of those who suddenly changed last week, with a 90 -day break for goods from many places except China. Dalio said it was “very disruptive” and the rates’ impact was “like throwing rocks into the production system.” He also expressed concern about the potential combined impact of US debt, US budget deficit and global political tensions. “We have profound changes in the world order … if you take rates, if you take debt, if you take the rising power that challenges existing power … how it is handled, it can produce something worse than a recession.” He called up market crises from 1971 and 2008, saying that the current situation could be “worse if these other matters occur at the same time,” he said. Dalio founded Connecticut-based Bridgewater about 50 years ago and has 175 investors, including pension funds, foundations and central banks.