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Dalio Warns Fiscal Stimulus May Debase USD, Cause Bubbles in Stocks

US
  • Bridgewater's Ray Dalio says the US government's big fiscal push could cause the economy to overheat and the dollar to fall
  • Biden's $1.9 trillion stimulus package, along with his $2 trillion American Jobs Plan risk forming an inflationary bubble, with money overflowing in the economy – resulting in a debased dollar.
  • Dalio says such risks should be carefully balanced, and "productivity" is essential to prevent the economy from overheating
  • Notes the stock market is not facing a debt bubble, but rather one with too much money and insufficient tightening, leading to the loss of the value of money.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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