The Debt-Liquidity Spiral
Once it is widely perceived that money and debt assets are no longer good storeholds of wealth,
Ray Dalio • Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail
Financial history has not ended, any more than political history ended with the fall of the Berlin Wall. But the next financial crisis will not be like the last one. It will not be triggered by defaults in US subprime mortgages, nor transmitted round the world by under-capitalized banks. It will be different because no two financial crises are ever
... See moreNiall Ferguson • The Ascent of Money: A Financial History of the World: 10th Anniversary Edition
At the end of the day, continued fiscal deficits will increase US public debts, which requires more liquidity, more monetization and more currency debasement.
Which is good news for holders of scarce assets (equities, RE, gold, BTC, crypto).
Which is good news for holders of scarce assets (equities, RE, gold, BTC, crypto).
Delphi Digital • The Year Ahead for Markets 2025 - Delphi Digital
back in the early 2000s, we had included a “depression gauge” in our systems that specified the actions we should take if a certain configuration of events began to play out in a way indicating a heightened risk of a debt crisis and depression. In 2007, this gauge indicated that a bubble of debt was nearing its bursting point because the costs of d
... See moreRay Dalio • Principles: Life and Work
discipline. With hindsight, our capital cycle approach has failed at times when we have underestimated the impact on industries of political and legal interference, disruptive technologies and globalisation.