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Is Ray Dalio blowing whistle on debt default? Krugman hinted at it as well [1]
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Date: 2025-03-11
CNBC has a breaking news banner with this cryptic news
Converge Ray Dalio warns that a severe U.S. supply-demand problem could lead to ‘shocking developments’ Bridgewater founder Ray Dalio on Wednesday warned that a “very severe” U.S. supply-demand problem could lead to “shocking developments.” “The first thing is the debt issue, we have a very severe supply-demand problem,” Dalio told CNBC’s Sara Eisen at CONVERGE LIVE in Singapore. Dalio said this will require the White House to sell a quantity of debt the world is just not going to want to buy. “That’s a set of circumstances that is imminent, OK? [skip] “That’s a big deal. You are going to see shocking developments in terms of how that’s going to be dealt with,” he added.
Shocking developments like….?
Chaos Is Bad for Business Most alarming of all, if it’s real: People within the administration appear to be floating the idea of restructuring U.S. debt via a “Mar-a-Lago Accord” that would force investors holding Treasury bills — short-term debt — to exchange them for 100-year bonds. This would effectively be a default on U.S. debt. Since the whole world financial system rests on the perceived safety of U.S. Treasuries, which are universally accepted as collateral for many transactions, such a move would threaten global economic chaos. But is the administration serious about this idea? Nobody knows.
To understand this unfolding economic crisis that Trump et al engineered, perhaps finding out who is running Trump’s investments and what communications he or his sons or other intermediaries have had with them would show motive? (Dems, you could run on this)
My guess is they would do a Mar-a-Lago Accord, or threaten it, or “leak discussions” in order to crash the world economy while they and a few buddies are shorting the markets. The mother of all insider trading schemes. AND TRUMP CAN’T BE PROSECUTED FOR IT thanks to SCOTUS Trumpers.
Maybe the tariff stuff is smoke and mirrors while they are planning “shocking developments”...
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