etc etc etc...
“To me, it seems obvious that [central banks] have to help the debtors relative to the creditors. At the same time, it appears to me that the forces of easing behind this paradigm (i.e., interest rate cuts and quantitative easing) will have diminishing effects,” Dalio wrote.
“For these reasons, I believe that monetizations of debt and currency depreciations will eventually pick up, which will reduce the value of money and real returns for creditors and test how far creditors will let central banks go in providing negative real returns before moving into other assets.”
Dalio added that he is uncertain of the timing for the shift but he thinks “it is approaching and will have a big effect on what the next paradigm will look like.”
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Submitted July 17, 2019 at 08:08PM by markyu007 https://ift.tt/32x25sB
