According to the calculations of the founder of the world’s largest hedge fund Bridgewater Associates, Ray Dalio, the Great Depression in the world economy will come soon.
Namely, the economic decline is expected in the next two years. Then, we are in for a financial collapse.
Dalio compared the present situation with the 1930s in the USA and stressed that this is a cyclical process.
Dalio explained that the economic cycle is divided into several stages. At the first stage, debts grow with incomes, while the value of corporate assets also grows.
Later, banks launch a policy of tightening monetary policy, interest rates are reduced to almost zero. At this stage, the economy enters the stage of depression. Then the central banks soften the policy and start buying assets. At this stage in the development of the economy, the gap between rich and poor is growing in the world, which leads to increased tensions.
“We are now in the late part of the cycle: the asset price is high, interest rates are low, we are beginning to tighten monetary policy — just like in 1937. In addition, we are in a situation in which the gap between the rich and the poor increases, which leads to the emergence of populism,” concluded Dalio.
Alyaksandr Lukashenka blamed on the global crisis the domestic economic problems last year and the year before last, and even in 2011 and 2013 — at the peak of oil prices and global economic recovery. This year Belarus has rejected the IMF loan. According to experts, the IMF money for Belarus is the cheapest. The rest is more expensive, and therefore worse for our country. Minsk plans to compensate for the lack of this loan by bonds worth $ 2 billion, which will be placed on the markets of Russia and China.