Billionaire investor Ray Dalio issued a stark warning regarding the future of global finance during a recent address at the Oxford Union, asserting that all major fiat currencies are “in trouble” due to unsustainable debt loads.

The Mechanics Of Devaluation

The Bridgewater Associates founder predicts the world is entering a period of significant currency devaluation comparable to the 1930s and 1970s.

Dalio's central thesis rests on the concept that “money is debt.” He explained to the Oxford audience that fiat currency is essentially a promise to receive payment.

When governments accrue insurmountable debt—such as the United States’ current $38 trillion burden—they are eventually forced to devalue the currency to service those liabilities.

“If you devalue money, you devalue debt,” Dalio stated. He argued that developed nations are now trapped in a cycle where they cannot raise taxes or cut spending enough to balance their books without causing social upheaval.

Consequently, policymakers will inevitably choose to print more money, diluting its value.

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