More: Lawmakers released the testimony of Mr. Sondland and Kurt Volker, the former special envoy to Ukraine.‘The world has gone mad’
Capitalism helped Ray Dalio build his investment empire. But the current system is broken, Mr. Dalio, the founder of Bridgewater Associates, writes in a LinkedIn post, continuing a crusade that he started in April.
“Money that is being pushed on investors isn’t pushing growth and inflation much higher,” he writes, because “investors who are getting it want to invest it rather than spend it.” That means “more companies than at any time since the dot-com bubble don’t have to make profits or even have clear paths to making profits to sell their stock,” he says.
“At the same time, large government deficits exist and will almost certainly increase substantially, which will require huge amounts of more debt to be sold by governments — amounts that cannot naturally be absorbed without driving up interest rates at a time when an interest rate rise would be devastating,” he writes.
“Where will the money come from to buy these bonds and fund these deficits? It will almost certainly come from central banks, which will buy the debt that is produced with freshly printed money,” he adds. “This whole dynamic in which sound finance is being thrown out the window will continue and probably accelerate.”
“At the same time as money is essentially free for those who have money and creditworthiness, it is essentially unavailable to those who don’t have money and creditworthiness, which contributes to the rising wealth, opportunity, and political gaps,” Mr. Dalio writes. “The system of making capitalism work well for most people is broken.”The U.S. trade gap is expanding
President Trump vowed to shrink the U.S. trade gap, arguing that the deficit is proof that unfair practices by China and other countries have been hurting the United States. But figures released by the Commerce Department yesterday show that it continues to grow, Ana Swanson of the NYT writes.
• The trade deficit for goods and services in the first three quarters of the year increased 5.4 percent, to $481.3 billion, from the same period last year.
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