{"id":12465,"date":"2024-03-28T19:41:46","date_gmt":"2024-03-28T19:41:46","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/03\/28\/ray-dalio-china-must-fix-debt-problems-or-face-lost-decade-times-of-india\/"},"modified":"2024-03-28T19:41:46","modified_gmt":"2024-03-28T19:41:46","slug":"ray-dalio-china-must-fix-debt-problems-or-face-lost-decade-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/03\/28\/ray-dalio-china-must-fix-debt-problems-or-face-lost-decade-times-of-india\/","title":{"rendered":"Ray Dalio: China must fix debt problems or face \u2018lost decade\u2019 – Times of India"},"content":{"rendered":"
\"Ray<\/div>\n
Ray Dalio has warned that China should cut its debt and ease monetary policy or face \u201ca lost decade.\u201d
The billionaire founder of Bridgewater Associates said in a nearly 5,000-word post on LinkedIn that he agrees with Chinese President Xi Jinping\u2019s warning of a 100-year period of unprecedented change and recommends the country take steps to manage its debt problem.
The hedge fund titan was referring to the Chinese Communist Party\u2019s political slogan of \u201cgreat changes unseen in a century,\u201d used to describe the future trajectory of international order. While the phrase was first used by Chinese academics following the 2008 recession, it was adopted by the party in 2017 and since used in diplomatic contexts.
\u201cWhen there is a lot of debt and big wealth gaps at the same time as there are great domestic and international power conflicts, and\/or great disruptive changes in nature, and great changes in technology, there is an increased likelihood of a \u2018100-year big storm,\u2019\u201d he wrote.
He added that China-US tensions are causing foreign investors to diversify or leave China for fear of being discriminated against. That\u2019s causing China to face difficulties obtaining investments, and without a reconciliation of economic and cultural clashes, the chance of a war in the next 10 years is high.
Dalio has a long history of involvement with Chinese officials and has expressed admiration for some of Beijing\u2019s economic policies, while also building up his business there. He\u2019s warned about the risks of conflict between US and China for years.
To manage its debt problem, Dalio recommends that China engineer a deleveraging and an easing of monetary policy at the same time, but acknowledges that such a move would be difficult and politically dangerous as it would lead to big changes in wealth levels.
\u201cNo one knows how far the pendulum will swing back toward the more Maoist\/Marxist ways of doing things,\u201d Dalio wrote. \u201cThe impediment is that communicating more directly is not the Chinese leadership\u2019s traditional way of doing things, which, as China goes back toward the more traditional ways of doing things, is understandable.\u201d<\/div>\n