The FED doesn't have skin in the game
Ray Dalio was once again very critical of liquidity injections and monetary easing programs, which he describes as the 'Garbage Effect'
Dalio, one of the richest men in the world and chief manager of the Bridgewater Associates fund, speaks, he moves the market. It happened with the statements he made in which he said that he preferred Bitcoins to have bonds, which caused the price of Bitcoin to rise substantially.
This week he again made harsh criticisms of the monetary policy that the Fed continues to carry out with its massive purchase of bonds, thus injecting a lot of liquidity into the markets. He made his statements coincide with those of the FED in which they tightened their policy for the next few years and the market has already reacted exorbitantly.
The main problem that he anticipates is the supply/demand that would trigger inflation because there would not be enough demand to buy these bonds.
Dalio has not been the only one who has anticipated this inflation, Taleb already warns that we are going to enter a hyperinflationary environment, and therefore recommends selling all long-term bonds. On the other hand, …