Ray Dalio Warns of Potential Return to Gold-Backed Currency System in the U.S.

Key Points

1. Ray Dalio suggests the U.S. might revert to a gold-backed currency system, as the dollar was once backed by gold and such a return is possible.

2. Dalio highlights historical cycles of currency devaluation, where governments often re-link their currencies to gold during economic instability.

3. He contrasts Trump's approach to reducing the dollar's value for debt management with Fed Chair Powell's focus on stable, low inflation.

4. Dalio advises investors to allocate around 15% of their portfolio to assets like gold or Bitcoin to hedge against currency depreciation and protect wealth.

5. The article mentions ongoing debates among experts about future U.S. monetary policy directions and the implications of Dalio's warnings.