Hedge fund titan Ray Dalio: Trickle-down economy 'not working' — Brittany De Lea

“This set of circumstances is unsustainable and certainly can no longer be pushed as it has been pushed since 2008. That is why I believe that the world is approaching a big paradigm shift,” Dalio wrote.

Governments are also battling large deficits, while pension and health care liabilities are increasing. The latter circumstance, he says, will result in an escalation of the wealth gap battle as the government decides whether to cut benefits, raise taxes or print money to address it.

This is far from the first time Dalio has sounded the alarm bells about either the U.S. or the global economies. In May, for example, he said a shift toward an economic theory backed by New York Rep. Alexandria Ocasio-Cortez – modern monetary theory (MMT) – was “inevitable” as the Federal Reserve eventually looks to ease monetary policy when interest rates are zero percent. MMT refers to the idea that if a government controls its own currency, there is no need to worry about balancing the budget. Therefore the government, not the central bank, can control the economy through fiscal policies, like spending and taxing.

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Hedge fund titan Ray Dalio: Trickle-down economy 'not working'

Brittany De Lea | FOXBusiness

Here is Ray Dalio's post at his blog at LinkedIn. You may need to sign up to read.

The World Has Gone Mad and the System Is Broken — 5 Nov 2019