The Fed Triggers Massive Global Calamity, Billionaire Ray Dalio Says

It’s been just revealed the fact that the billionaire Ray Dalio warned recently about the fact that other countries are no longer lining up to purchase the government debt following witnessing the crisis in the US banking industry. Check out the following reports about this below.

It’s been just revealed the fact that the billionaire Ray Dalio warns that other countries are no longer lining up to purchase government debt. This is happening following the witnessing of the crisis in the US banking industry.

In a new interview with YouTuber Chris Williamson, Dalio explained the reasons for which the collapse of Silicon Valley Bank is just a symptom of a much larger problem instigated by the Federal Reserve.

As noted by the online publication the Daily Hodl, the bond prices and interest rates tend to move in the opposite direction.

When interest rates are soaring, the prices of older bonds are plummeting as they have to compete with newer bonds that offer higher yields.

Dalio stated the following:

“If you look at the Silicon Valley Bank issue, it’s not so much their issue as much as a worldwide issue… What’s a bank? A bank takes in deposits, and then it takes that money and invests it in things. So they bought a lot of government bonds that had a higher yield than they were paying out in the deposits.”

He continued and said:

“There’s a tightness of monetary policy, and those yields went up and the bonds went down in value, and then the amount they have to pay out went up in value, and so they went broke.”

Dalio also made sure to highlight the fact that this is happening all over.

“That happens not only through banks. Banks as a whole did a lot of that, but insurance companies and so on all around the world. The same sort of thing happened in Europe. The same sort of thing happened with (Japan), companies even buying US dollar bonds a lot,” he said as noted by the online pubcalition the Daily Hodl.