2023-01-26 01:46:29

Why Ray Dalio Says The Debt Limit Is A Farce

Logo Benzinga
By Bhavik Nair

Ray Dalio, the founder and CIO of hedge fundBridgewaterAssociates,believes what is called the debt limit never actually limits the debt, but is in fact a farce.

What Happened:Its a farce that works like a bunch of alcoholics who write laws to enforce drinking limits, and when a limit is reached, they do a farcical negotiation that temporarily eliminates the limit which allows them to have the next drinking binge until they reach the next limit at which time they go through the next farcical negotiation and continue to binge, Dalio wrote in a post titled The Farce and Consequences of the Debt Limit and the Debt onLinkedIn.

"I gather that this is the 79th farcical negotiation that has taken place," he said.

Dalio also wondered whether this ritual shows the people running the political system lack discipline. I think it makes clear that the long-term prognosis is for the debt bingeing to go on until a crisis ends this dynamic. However, most people seem comforted that the debt limit wont trigger a debt default and dont worry about the debt bingeing continuing, he said.

Continue read on benzinga.com

Logo Benzinga
PoliticsBy Bhavik Nair2023-01-25 02:37:46
Congressional Democrats are now reportedly pushing Republicans to come up with a proposal to increase the debt ceiling and avert a U.S. default after they...

Logo Nasdaq
Business / FinanceBy Money Com2023-01-25 19:24:05
Student loan forgiveness, once a far-fetched idea from progressives, seemed to become reality in August when President Joe Biden announced a plan to cancel...

Logo Nasdaq
Business / FinanceBy The Motley Fool2023-01-25 19:00:25
Image source: Getty Images The United States officially hit its debt ceiling on Thursday, Jan. 19, according to a letter from Treasury Secretary Janet...

Logo Investing.com
PoliticsBy Bloomberg2023-01-25 21:00:16
(Bloomberg) -- Ultraconservatives in the House have dominated the public discussion on the US debt ceiling, but Speaker Kevin McCarthy cant afford to ignore...

Logo Bloomberg
PoliticsBy Liz Mc Cormick2023-01-25 22:21:28
The three most-cited debt-rating firms are all expecting Congress ultimately to raise the federal debt ceiling — despite a deep partisan divide — though...

Logo Bloomberg
PoliticsBy Mackenzie Hawkins2023-01-25 19:52:35
Ultraconservatives in the House have dominated the public discussion on the US debt ceiling, but Speaker Kevin McCarthy can’t afford to ignore GOP centrists...

Logo U.S. News & World Report
PoliticsBy Kaia Hubbard2023-01-25 22:52:37
Tensions have only risen in Congress since the U.S. hit the debt ceiling last week, kickstarting a number of extraordinary measures from the Treasury...

PoliticsBy Lisa Mascaro2023-01-24 05:09:42
WASHINGTON The debate around raising the debt ceiling sounds eerily similar: Newly elected House Republicans, eager to confront the Democratic president in...

Logo Bloomberg
Politics2023-01-25 21:27:30
Editorials and commentaries from Bloomberg Opinion

Logo Bloomberg
PoliticsBy Josh Wingrove2023-01-24 20:40:23
Congressional Democrats pressed Republicans to offer a concrete proposal for raising the nation’s debt ceiling and avoiding a default after a meeting on...

Logo Bloomberg
PoliticsBy Chris Anstey2023-01-24 17:08:24
Treasury Secretary Janet Yellen advised Congress that her department is deploying an additional accounting maneuver to avert breaching the federal debt...

Logo Bloomberg
PoliticsBy Alex Harris2023-01-25 16:00:00
A failure by the US government to pay its debts on time would probably cause catastrophic fallout throughout global financial markets. But some are more...

Logo American Banker
Business / FinanceBy Kate Berry2023-01-25 02:00:00
California's Attorney General Rob Bonta is defending the state's newly enacted small-business disclosure law that requires merchant cash advance lenders,...

PoliticsBy Matthew Daly2023-01-25 16:48:28
WASHINGTON Ratcheting up his criticism of the Biden administration, Democratic Sen. Joe Manchin on Wednesday moved to delay new tax credits for electric...

Business / FinanceBy Lorie Konish2023-01-24 20:35:56
Key Points A 2015 expansion of the Military Lending Act extended a cap on annual percentage rates at 36% for revolving credit. As interest rates on debt...

PoliticsBy Associated Press2023-01-25 05:10:55
BEIJING The Chinese government says the United States should stop pressuring it on debt relief for Zambia and get its own financial house to avert a default...

Logo Benzinga
PoliticsBy Bhavik Nair2023-01-24 04:56:41
California Democrat Rep. Ro Khanna (D-CA) has reportedly said the U.S. will not default on its debt but the Biden administration might have to act...

Logo Bloomberg
PoliticsBy Mark Niquette2023-01-19 19:46:58
Donald Trump is egging on Republicans already intent on using the federal debt limit as leverage to extract concessions from Democrats, potentially pushing...

Logo Benzinga
PoliticsBy Navdeep Yadav2023-01-25 07:39:08
Xi Jinping 's representative in Zambia slammed the U.S. after Treasury Secretary Janet Yellen called Beijing a barrier to debt reform in Africa. What...

Logo PR Newswire
CHICAGO, Jan. 25, 2023 /PRNewswire/ -- Whether you're a lawmaker, a business owner or leader, or an everyday voter, one thing is clear: California has become...