12:02 - 29.01.2026

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January 29, Fineko/abc.az. Billionaire and founder of Bridgewater Associates, Ray Dalio, explained why governments are switching from hard currencies to fiat money, and warned about the economic consequences.

ABC.AZ reports that according to Dalio, attempts to prolong credit cycles artificially lead to depreciation of money.

Dalio notes that central banks print money without restrictions, eliminating the risk of shortage of gold, but this creates the threat of overproduction of money and debt. When the amount of money exceeds the volume of goods and services, debt default or devaluation is possible.

The financier believes that the global monetary order is now disintegrating: investors are moving away from paper currencies to gold and real assets. He advises keeping 5-15% of gold in a portfolio as insurance against the depreciation of fiat money, comparing the situation with the era of stagflation in the 1970s.