is cash still trash of course cash is still trash you know how fast you're losing buying
power in cash the federal reserve is going to sell individuals are selling foreigners are selling and
the u.s government is selling because it has to fund its deficit so there's going to be a
supply-demand problem that means that it produces a squeeze because so much money was put out at
such cheap rates right and so much financing was taken that they it'll be difficult to achieve
that balance we're in a paradigm shift i think a paradigm is uh you know something happens for 10
years an environment for 10 years and at the end of that 10 years people believe everything that
happened in the prior 10 years and then they get a surprise and then they start to change
and something like for example cash is a safe investment or bonds are a safe investment after
a 40-year bull market and those types of things that begins to shift as they start to think am
i getting a real return so there's going to be a supply demand balance most importantly
welcome back everybody to altcoin daily where you subscribe for daily videos on everything going on
in cryptocurrency billionaire legendary investor ray dalio has just given his updated thoughts
on the economy and why he holds bitcoin and why you should be interested in cryptocurrencies
first ray dalio identifies the three major problems in the economy today listen to the three
problems that he identifies and then we'll review what do you think what do you think is going to
happen to this crazy economy of ours i think like you know three major themes that we have
to understand right the creation of too much debt and too much money right in the amounts that never
existed in our lifetime but existed many times in the past and the 1930-45 period number one
number two is the internal conflict populism of the left and the right and what that is doing
both politically and that of course have economic uh considerations and number three is the rising
of great powers to challenge the existing great power and existing world order now if you bring
those things down here we are having a monetary policy okay where are we in the monetary policy
and what's the big question so if you want me to answer that so the three problems that ray dalio
identified number one the creation of too much money and debt number 2 internal conflict i.e
divided left and right and number 3 rising great powers that are challenging and bringing down
existing great powers let's unpack these so number one the creation of too much money and debt
i.e mass capital creation sloshing around in our economy the fed has been kicking the can down the
road forever the rich getting richer the wealth gap being widened number two internal conflict
divided left and right i.e the nation is so divided right now on so many issues people feeling
disconnected from each other and quite honestly forgotten about by the powers that be the people
supposed to help them like the mainstream media like the banking system and it seems the divide
between people in social issues and many other things the divide is just getting stronger the
mainstream media certainly doesn't help and number three rising great powers that are challenging and
bringing down existing great powers this could be many different things and a combination of things
america losing ground to other nations china saudi arabia russia the mainstream media losing ground
to independent outlets or maybe even the federal reserve and traditional finance losing ground to
bitcoin and crypto before we get into bitcoin and crypto before we hear him talk about it
let's answer the question is the fed even capable of fixing things can the fed reduce demand without
breaking the back of the economy what do you think right i think that big question is can the fed
effectively uh reduce demand without breaking the back of the economy okay and rather than
just jumping to the answer i always like to deal with the mechanics of behind the answer you know
and um i think the answer is no but here's the reason why when there's a lot of debt one
man's debts are another man's financial assets and they have to balance both of those things
and so they will not be able to raise interest rates to a high enough level to adequately provide
a real return to investors so if you think about the rising rates and we say three percent right
is an interest rate right or even four percent in an interest rate that is not going to be an
amount of money that's adequate to compensate for the inflation rate and we're in a paradigm shift i
think a paradigm is uh you know something happens for 10 years an environment for 10 years and at
the end of that 10 years people believe everything that happened in the prior 10 years and then they
get a surprise and then they start to change and something like for example cash is a safe
investment or bonds are a safe investment after a 40-year bull market and those types of things
that begins to shift as they start to think am i getting a real return so there's going to be a
supply demand balance most importantly the federal reserve is going to sell individuals are selling
foreigners are selling and the us government is selling because it has to fund its deficit
so there's going to be a supply demand problem that means that it produces a squeeze because
so much money was put out at such cheap rates right and so much financing was taken that they
it'll be difficult to achieve that balance so i remember when you would tell us that cash is trash
yeah is cash still trash of course cash is still trash cash i'm asking you is your interest you
know how fast you're losing buying power in cash i feel that in terms of inflation every day however
i'm also for those who own equities out there they're feeling it even worse well it depends what
what depends what cash is equities are trashier okay the question is what's going to get you a
real return right and so we've shifted it into an environment where assets that do well almost like
in the 70s are in those types of things real assets real return assets in its various ways
are the best investments i think the world is long that here's a dynamic i think that's a problem
everybody's long equities and so on and everybody wants everything to go up and the federal reserve
wants everything to go up so what they do is they give you money and credit lots of money and credit
that helps hyping it and when the more they hype it the more it becomes somebody else's financial
asset they're holding yep and so the world is holding all these financial assets and so on
you can't have that so you're going to have an environment i think of negative real returns
and so as you think about how do you diversify your portfolio or even be short those things
everything can't go up all the time that system won't work that way finally let's get ray dalio's
thoughts on bitcoin and cryptocurrencies seems like more and more big players and thought leaders
are being coaxed to speak on this lately bitcoin is part of the conversation whether skeptics
like it or not now now ray dalio has come out as a bitcoin bull in the past does he still own bitcoin
what does he think of blockchain and crypto one of the things that you and i have talked about a
lot over the years is cryptocurrencies and bitcoin and in the past year or two it felt to me that you
had shifted your view about them a little bit and actually got excited to think that maybe bitcoin
and others could get interesting and i'm curious how you think about that now in terms of whether
that's actually an inflation hedge or maybe it isn't no i um i think let me clarify again
because some people make stereotypical i think that cryptocurrencies and particularly i think
blockchain's great um but let's call it a digital gold right i think a digital gold which would be a
bitcoin type of thing is a um is something that probably in the interest of diversification of
finding uh an alternative to gold has a little par a little spot relative to gold and then relative
to other assets but i think that we're in an environment that we're now going to ask what is
the new money okay so meaning fiat currencies and when we look at currencies if you hold currencies
in the form of a debt right and so when i say cash is trash what i mean is that all currencies um in
relationship to the euro in relationship to the yen all of those currencies like in the 1930s will
be currencies that will go down in relationships to goods and services and we are in an environment
where we're going to be looking at what are those assets what is the type of money that you could
move between countries that's a medium of exchange and a store hold of wealth and that's so that's
what i'm talking about and i'm saying that bitcoin has made a tremendous achievement over the last 11
years of being able it's a tiny percentage of my portfolio i think the bitcoin people
get too preoccupied with it the gold bugs get too preoccupied with it and i think you have to
look at the broader set of assets that serve that purpose there you have it ray dalio likes bitcoin
ray dalio likes blockchain and cryptocurrencies and perhaps bitcoin and crypto are one of the most
clear answers to help us opt out of the failing economy the doomed fed the inflated dollar people
are starting to realize that bitcoin and crypto are here to stay crypto currencies
and blockchains are great ray dalio bitcoin has made a tremendous achievement over the past 11
years it's a tiny percentage of my portfolio and ray dalio even said that crypto has a place
in the wider set of asset classes the future is bitcoin the future is crypto make sure you
subscribe to our channel for daily cryptocurrency coverage a video every day providing you
with value news opinion analysis smash the like button and i will see you tomorrow my