He says that we're currently in a time of established power being challenged by emerging powers. The current trade war that our administration is waging against China and international economies is exactly what he is talking about.
Another legendary investor, Jim Rogers believes that the trade war will be the catalyst that causes the great reset, or economic depression that is coming.
Dalio compares our current economic expansion to a baseball game, saying that we are currently in the 7th inning of a 9 inning game. He points out that we have squeezed just about all of the productivity that we can out of our economy and as interest rates rise and normalize, prices will naturally fall.
He says that a downturn is coming and that the tools the federal reserve and other central banks used to stoke the economy last time, will not be as effective this next time.
Within the next two years the federal reserve will have drastically slowed lending money to the U.S. government, so in order to service current debt levels, our government must look abroad to sell treasury bonds and borrow money. Our government needs to borrow so much money every single day just to keep the lights on, he believes it will become increasingly difficult to find foreign money to buy our bonds, thereby driving interest rates up.
When interest rates go up it becomes more expensive to borrow and economies contract because there's less commerce. He says that will also drag down the value of the dollar, thereby making everything more expensive for the people of this country.
He says that other countries currencies are currently being squeezed by their even more obnoxious levels of debt and that is driving the value of the dollar higher in the short run, but that should all change within the next two years.
The interviewer asks him what changes we can make to be prepared for what is coming and one of the things that Dalio says, is that people must be made useful. People must be employed so the government has revenue through income taxation.
He declares this issue a national emergency and points out the troubles within our educational system. Did you receive an education that prepared you for adult life?
He says our national debt is so out of control that higher taxes are probably necessary, but that the real solution is unleashing people's productivity. He says that we must make our educational system a priority, so that students are prepared to be as productive as possible, once they are part of the workforce.
He goes on to say that trying to time the financial markets is an extremely difficult thing to do and that the average person should avoid it. His company, Bridgewater Associates currently employs 1600 people who are playing that game, so he knows what he's talking about.
He says it's tough for the average Joe to keep up because you have to examine employment, capacity, what the central bank is doing, the amount of debt used to finance asset purchases, investor and consumer sentiment, and by comparing the yields of stocks and bonds to their prices.
This kind of stuff is either far too complicated, or just uninteresting to the average person, so the best thing they can do is balance their portfolios and take steps necessary to protect their income. Or, be like most people and ignore what's coming and take the brunt of the next recession.
It's important to remember that phenomenally wealthy investors get that way by having cash to buy trophy assets, when there's blood in the streets and everyone is selling.
Not many of the economists I follow agree and feel that we have two years left before tough economic times arrive. Many believe that we are years overdue and are quite afraid. If economic mother nature is held at bay for another two years, the reversion of asset prices to the mean will be even more severe.
I assume you are reading this because you are on a mission to be informed. The informed know that a recession and even great depression is right around the corner and they are taking measures to protect themselves. What steps can you take to protect your family's income?
What will you do today to prepare for the tough economic times of tomorrow?
My family has chosen to invest in precious metals, a little Bitcoin, shares of companies that sell products and services that people must have, and we have done our best to diversify into multiple sources of income.
The ability to make money online is one of our most valuable safety nets.
The time to prepare is before disaster strikes, not after.
If you need a pick-me-up because I've just depressed you, check out how Tony Robbins says to break negative thinking!
Matt T. Nathanson
Freedom Through Digital Education
Our core value is this - we want to help anyone who has the courage to step out of the status quo (your financial security in the hands of an employer) and drive into creating life on their own terms. All you'll need is a working computer, a decent internet connection and the commitment to learn the skills that will set you free. We help each other and if you're hoping to find a community of people who can show you Hedge Fund Legend Ray Dalio's Outlook On The U.S. Economy For 2019 And Beyond, you've found it!
Most of our community members were working to build someone else's business and someone else's dreams, but decided that life is too short. We all had "a-ha" moments and decided to recreate our lives by starting online businesses in our spare time. Join us and protect your income!
Meet Stuart Ross, SFM Co-Founder and Your Guide
"Welcome! I started my journey into the digital and entrepreneurial world with nothing more than perseverance, a laptop and a dream.
To date, I’ve created a multi-million dollar lifestyle business in the education and technology industry that I absolutely LOVE. My driving passion is sharing the know-how and mindset that lets others feel the same way.
The reason they call me The Freedom Entrepreneur is because I refused to accept the constraints of traditional employment. Having successfully found a better route, I’m committed to showing others how to live life on their own terms too."
Stuart and his team have helped thousands of people who want to be self-employed from the comfort of their computers, but don't know how. The SFM's Digital Business System and community are one of the fastest ways to get you from where you are, to where you want to be.
Four Principles To Create Your Best Life
PRINCIPLE #1 KNOW YOUR VISION
Stuart talks about vision moments. My girls screamed with delight, as they touched snow for the very first time and like a light switch, I instantly realized that no job was worth missing my kids' childhood and making quality memories together. That's the vision that keeps me motivated. I'm putting the effort in now, so I have free time and extra money to make memories with my wife and kids for many years to come.
PRINCIPLE #2 INVEST IN YOURSELF
"Every day I make sure that in some capacity, I'm investing in myself. Unlike school, as a self-learner, you get to choose the areas you're enthusiastic about and you get to choose the people that you're learning from." The most important investment I've ever made has been in me and my education, not a 401k. The return on your investment is the ability to earn income, no matter what the economy is doing.
PRINCIPLE #3 DO THE WORK
Find someone who has what you want and do what they did! Find someone who’s willing to teach, who's been there and done what you'e looking to do, and follow their lead. I tried to build several online businesses early on, without a guide, and failed. Then I found the SFM and their guidance allowed me to succeed. It's designed to help anyone go into business for themselves online.
PRINCIPLE #4 KNOW YOUR VALUES
If you don't know your values, then it's time to uncover and illuminate them. Then, everything else you do will be aligned with your values.
One of my main values is family. I decided to make a change and learn the skills necessary to be self-employed online, so that I'm always available to make memories with my wife and kids.
God, integrity, loyalty, having fun, and passion are a few other values I hold dear. What values drive your daily actions?
It's your time to join a group of people who are completely changing their lives for the better. Are you ready to find out what the SFM community is all about?
Submitting your application comes with a 30 day money back guarantee. Feel free to check it out and if it's not for you, get your money back by emailing firstname.lastname@example.org.