Has Trump considered people don’t buy American because the product isn’t that good anymore?
Who’s going to buy a Tesla when decent European and Asian manufacturers make much better cars?
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zonavar68 · 56-60, M
If it keeps up there will be a global boycott of us made or us owned company made products.
Khenpal1 · M
@zonavar68 Asked whether the U.S. debt problem could lead to a period of austerity, Dalio said the issue could result in a restructuring of the debt, the U.S. applying pressure on other countries to buy the debt, or even cutting off payments to some creditor countries.When asked about the potential consequences of a simmering trade dispute, Dalio described the current state of affairs as “an extension of the patterns of history” — and singled out 1930s Germany as one example.
Dalio said there was a write-down of debt at that time, alongside a hike in tariffs to boost revenue and a buildup of its domestic base. “Be nationalistic, be protectionistic, be militaristic. That is the way these things operate,” he said.
“The issue is really the confrontation of all of this, the fighting of all of this. So, tariffs are going to cause fighting between countries,” Dalio said, adding that he was not necessarily talking about a military confrontation.
“But think about U.S., Canada, Mexico, China, and all of those types of fighting. There will be fighting, and that will have consequences, and I think that’s the main thing to pay attention to,” he said.Dalio said he was sharing those views as a politically neutral observer, comparing his approach to that of a mechanic or doctor. “I’m not an ideologue,” he added.Ray Dalio warns U.S. could face a surprise debt-crisis 'heart attack' within three years Foreign buyers' appetite for U.S. debt is likely the key metric to watch. At a certain point, buyers might balk when called upon to buy more, sending U.S. bond yields soaring, and likely pushing the U.S. economy into a recession."When you reach the part of the cycle that you have to borrow money to pay debt service, and the holders of those bonds say it's a risky situation - in the private debt market, we call that the debt death spiral," Dalio said.
While the U.S. didn't accumulate more than $36 trillion in debt overnight, whichever party is in power when the tipping point finally arrives will likely have to deal with the political blowback, Dalio said. He advocated for an immediate commitment from the government to slash the deficit to just 3% of GDP.
"If you don't do that, then you own it...you have to take responsibility for the consequences," Dalio said. "When the economy and this heart attack of sorts comes along, then you're going to find yourself that the voters are not going to be very happy. So you own it."
Dalio said there was a write-down of debt at that time, alongside a hike in tariffs to boost revenue and a buildup of its domestic base. “Be nationalistic, be protectionistic, be militaristic. That is the way these things operate,” he said.
“The issue is really the confrontation of all of this, the fighting of all of this. So, tariffs are going to cause fighting between countries,” Dalio said, adding that he was not necessarily talking about a military confrontation.
“But think about U.S., Canada, Mexico, China, and all of those types of fighting. There will be fighting, and that will have consequences, and I think that’s the main thing to pay attention to,” he said.Dalio said he was sharing those views as a politically neutral observer, comparing his approach to that of a mechanic or doctor. “I’m not an ideologue,” he added.Ray Dalio warns U.S. could face a surprise debt-crisis 'heart attack' within three years Foreign buyers' appetite for U.S. debt is likely the key metric to watch. At a certain point, buyers might balk when called upon to buy more, sending U.S. bond yields soaring, and likely pushing the U.S. economy into a recession."When you reach the part of the cycle that you have to borrow money to pay debt service, and the holders of those bonds say it's a risky situation - in the private debt market, we call that the debt death spiral," Dalio said.
While the U.S. didn't accumulate more than $36 trillion in debt overnight, whichever party is in power when the tipping point finally arrives will likely have to deal with the political blowback, Dalio said. He advocated for an immediate commitment from the government to slash the deficit to just 3% of GDP.
"If you don't do that, then you own it...you have to take responsibility for the consequences," Dalio said. "When the economy and this heart attack of sorts comes along, then you're going to find yourself that the voters are not going to be very happy. So you own it."