Facebook pixel Skip to main content

Fortune: Ray Dalio Warns that Soaring U.S. Inflation is Eroding Wealth - Especially if You Hold Cash

November 12, 2021
Inflation Destroys Cash

Article by Nathan Crooks in Fortune magazine websitre

Ray Dalio sounded the alarm bell on Thursday after inflation in the U.S. surged to the highest level since 1990 and warned his followers that rising portfolio values don’t actually signify increasing wealth.

“Some people make the mistake of thinking that they are getting richer because they are seeing their assets go up in price without seeing how their buying power is being eroded,” Dalio wrote in a post on LinkedIn. “The ones most hurt are those who have their money in cash.”

Dalio, the billionaire founder of Bridgewater Associates, has long been known for his view that there are better assets to hold than cash amid central bank money printing. In periods of rising prices, he says it’s actually more important to look at what you can buy with that money.

“When a lot of money and credit are created, they go down in value, so having more money won’t necessarily give one more wealth or buying power,” Dalio wrote, adding that real wealth becomes a function of production capacity over time. “Printing money and giving it away won’t make us wealthier if the money isn’t directed to raise productivity.”

“There isn’t an individual, organization, country, or empire that hasn’t failed when it lost its buying power,” he wrote. “The United States now is .......

To read this article in Fortune in its entirety, click here.

Find out how Gold can bolster your portfolio!

Gold Kit

Complete this form to get more information and to receive a FREE Gold Kit.

or Call Now 800-576-9355
By clicking the below button, you agree that Lear Capital can contact you at the e-mail and telephone number provided with marketing offers. Msg. and data rates apply. Your consent to such contact is not required for purchase.
We respect your Privacy
Google general page pixel