In a recent statement, Billionaire Ray Dalio accuses the White House of attempting to devalue the U.S. dollar in a power struggle against the Federal Reserve.
In a recent statement on the X social media platform, billionaire Ray Dalio, founder of Bridgewater Associates, expressed significant caution about the future of the U.S. dollar. Dalio highlighted the unprecedented scale of U.S. debt and the risk of a severe financial crisis if it is not managed effectively [1].
The U.S. government currently faces unsustainable debt servicing costs, with around a trillion dollars per year in interest, and must roll over more than nine trillion dollars of debt soon, creating a severe financial strain likely to undermine the dollar’s stability [1]. As a result, the dollar has already fallen approximately 10% in 2025 against other currencies, and Dalio predicts a continued weakening [1][4].
The erosion of trust in fiat currency could lead to a return of the gold standard, akin to the historical monetary cycle, where fiat currencies, after extensive money printing and debt crises, lose credibility and governments restore trust by backing currency with real assets [2].
Dalio suggests that investors should consider hard assets like gold or Bitcoin as hedges against the dollar's decline, recommending a typical allocation of about 15% to these assets for risk management, with a preference toward gold given its long track record [5].
President Trump has been pushing to debase the dollar to manage the nation's massive debt burden, a move that has been a point of contention between him and Fed Chair Jerome Powell [6]. Trump has repeatedly called for Powell to step down and has floated the idea of firing him.
Meanwhile, the U.S. government lost $17,000,000 in three days due to a viral ATM glitch tied to a jobs youth program [3]. Scammers also drained $27,000 from a Bank of America customer after duping them with an Apple Wallet trick, and a mechanic lost 25 years of life savings after a bank error resulted in money ending up in scammers' accounts [3].
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In summary, Dalio’s view is that the U.S. faces a looming currency devaluation and debt crisis unless meaningful reforms occur, and this will likely push the country toward a more asset-backed monetary system while encouraging investors to seek protection outside of traditional fiat holdings [1][2][5].
References:
- Bloomberg
- CNBC
- Reuters
- The Wall Street Journal
- Forbes
- The New York Times
- The Daily Hodl
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- Amidst the confirmed declining stability of the U.S. dollar [1], Ray Dalio, founder of Bridgewater Associates, suggests that investors should consider cryptocurrencies like Bitcoin as potential hedges due to its digital nature and finite supply, as an alternative to traditional fiat holdings [5].
- Given the current political discord between President Trump and Fed Chair Jerome Powell regarding the debasement of the dollar [6], broader discussions about the adoption and regulation of cryptocurrencies in the business and politics sectors may heighten [7].
- As altcoins and other digital assets become popular investment options, it is crucial for both general-news outlets and specialized platforms like The Daily Hodl [7] to cover relevant news, scams, hacks, and discussions on future monetary systems [1][2][7].
- The erosion of trust in traditional currencies could lead not only to an increased interest in cryptocurrencies like Bitcoin as potential replacements, but also to the reemergence of asset-backed monetary systems, akin to the historical monetary cycle [2].
