Ray Dalio: ‘I Think We’re Going to Try to Kill Each Other’

https://www.institutionalinvestor.com/article/b1hx19vhc9j59c/Ray-Dalio-I-Think-We-re-Going-to-Try-to-Kill-Each-Other?utm_medium=email&utm_campaign=The%20Essential%20II%2011619&utm_content=The%20Essential%20II%2011619%20Version%20A%20CID_a8b85b8f7e4e3de5e460beb1a61caf50&utm_source=CampaignMonitorEmail&utm_term=Ray%20Dalio%20I%20Think%20Were%20Going%20to%20Try%20to%20Kill%20Each%20Other

...he first is the large wealth gap, which has led to a large political gap and increased polarity. “We are at each other’s throats and it’s not functional,” he said, likening current conditions to the 1930s. 

The second factor, he said, is the absence of effective monetary policy, with political leaders likely unable to agree on any stimulus packages that may be necessary. “This is when times are good — imagine what it’s going to be like when we have a downturn” and lack effective monetary policy.

The third phenomenon is the shift in global power, with the ascension of China. “When there is a rise of a power to challenge the existing power, then there is going to be conflict,” Dalio predicted. 

... Add on to that an 11 percent budget deficit in China — the second-biggest economy — and 3 percent in Japan: it’s a heady economic brew that we’re all consuming.”

...According to Dalio, the President — “or somebody” — needs to declare the situation a national emergency and bring together a bipartisan group of economic experts and individuals who are dealing with the problems of inequality day to day. “I’d lock them up in a place for six month and say you can’t come out unless you reach an agreement that is smart that increases the size of the pie and divides the pie well,” Dalio said.