Veteran hedge fund manager and famous American investor Ray Dalio expressed his concerns about the rising prices of consumer goods.
Expressing his thoughts on high inflation in a recent interview, Dalio said,
I am very worried about this because although the amount of money and credit that needs to be produced and budgeted has increased greatly, it will still bring many problems if it is not spent because the markets have a sensitivity in this regard.
said. Dalio’s comment came just as Labor Department Consumer Price Index data rose 6.8% in November, the highest in 39 years.
The famous billionaire, who said in a post on LinkedIn that high inflation can be devastating, especially for fiat money investors,
Some people make the mistake of thinking they’re getting richer because they don’t see how their purchasing power is eroding and focus only on their assets rising in price. However, those who suffer the most are those who turn their money into cash.
commented. Stating that he is also worried about the USA printing too much money without increasing its productivity levels, Dalio continued his speech with the following words:
… You must remember that you cannot raise living standards by simply creating money and credit. In the long run, your wealth and purchasing power will be an indicator of how much you produce. This is because true wealth and legacies do not last forever. That’s why it’s so important to be constantly productive.
On the other hand, Dalio criticizes that countries constantly print money when there is a financial problem. he said.