The founder and chief investment officer of Bridgewater Associates, the world’s largest hedge fund company, warned that the government may “impose a ban on capital flows” on assets such as Bitcoin. He added that regulators may also impose tax rate changes, which “may be more shocking than expected.”
Ray Dalio warns the government to ban and levy taxes
Ray Dalio, the founder and chief investment officer of Bridgewater Associates, published an article on Linkedin last week with the headline: “Why… when the world bonds are issued, you will own the bonds?”
He pointed out that the “extremely low yields” currently provided by the bond market “cannot meet the financing needs of these asset holders.” The executive wrote: “There are now more than $75 trillion in US debt assets of various maturities. “He added that their holders sometimes want to sell them to get cash to buy goods and services.
However, Bridgewater’s chief investment officer estimates, “At current valuations, there is too much money in these financial assets, and it is impossible to realistically expect that a large part of the money in bonds can be turned into cash. And can be converted into goods and services.” He elaborated: “It must be accommodated by printing large amounts of currency and devaluing it, and restructuring large amounts of debt and government finances (usually including substantial tax increases).”
Dario explained: “Based on historical operations and what is happening now, I believe that tax changes will also play an important role in promoting capital flows to different investment assets and different locations, and these changes will affect market changes.”
The billionaire fund manager emphasized: “If history and logic are to be used as a guide, decision-makers who lack funds will raise taxes and do not want these capital to be transferred from debt assets to other wealth assets and other tax areas.” Warning:
They are very likely to prohibit the transfer of capital to other assets (for example, gold, bitcoin, etc.) and other locations. These tax changes may be more shocking than expected.
The founder of Bridgewater Associates cited the wealth tax proposed by Elizabeth Warren as an example and pointed out its “large scale.” He hopes to quote his research on “wealth taxes in other countries at other times”, hoping that the proposal “is most likely to lead to more capital outflows and other measures to evade these taxes.”
Therefore, Dario pointed out: “The United States may be regarded as an unsuitable place for capitalism and capitalists.” He emphasized that “the possibility of passing a large amount of property taxes in the next few years is very high.” Finally, Bridgewater Executive warning:
People should pay attention to changes in taxation and the possibility of capital controls.
In recent months, Dario has been studying Bitcoin. In November last year, he admitted that he might be wrong with Bitcoin, but still worried that the government would make cryptocurrency illegal. He said that in December of last year, Bitcoin could “act as a decentralizer for the storage of gold and other such wealth assets.” Then, in January of this year, he said that “Bitcoin is an invention hell”, which shows that his company pays close attention to this cryptocurrency.
What do you think of Ray Dalio’s warning? Let us know in the comments section below.
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