Ray Dalio: “Mechanistically, the UK government is operating like the government of an emerging country, producing too much debt in a currency for which there is not much world demand".
'Up to a point, Lord Copper'. It is difficult to argue the UK has too much debt when Mr Dalio's own government has at least as much, plus additional significant undeclared & unfunded liabilities. What it reveals, I think, is the US government has leeway not available to others due to the special status of its currency. In that sense, all governments operate like an emerging country - or devalue against the dollar - except the US itself. Of course, if the Fed changes course, that dynamic changes.
Ray Dalio: “Mechanistically, the UK government is operating like the government of an emerging country, producing too much debt in a currency for which there is not much world demand".
'Up to a point, Lord Copper'. It is difficult to argue the UK has too much debt when Mr Dalio's own government has at least as much, plus additional significant undeclared & unfunded liabilities. What it reveals, I think, is the US government has leeway not available to others due to the special status of its currency. In that sense, all governments operate like an emerging country - or devalue against the dollar - except the US itself. Of course, if the Fed changes course, that dynamic changes.