Billionaire investor Ray Dalio warned that the United States is heading for a “style autocracy from the 1930s”. He suggested that this political change could lead to an increase in yields of American long -term bonds, a lower dollar and an increase in gold prices.
Indeed, American long -term bond yields have soaked today. Market players are now looking at if this change could trigger a Bitcoin rally.
Trump fed the acquisition of a “ serious risk ”
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Dalio made his complaints in an interview with the Financial Times. He defined “the style autocracy of the 1930s” as an increase in the Trump administration’s intervention in the market economy. The US government recently sparked controversy with its decision to acquire a 10% stake in Intel, a company that has financially difficult.
In the interview, Dalio also focused on the growing wealth gap in the United States, arguing that the widening of the fracture causes a break in social confidence and a significant divergence of values among ordinary Americans. He warned that this erosion of trust leads to more extreme policies.
President Trump’s recent attempts to control the federal reserve, including the recent dismissal of the board of directors, Lisa Cook, are an excellent example. Dalio said that if the central bank succumbs to political pressure and maintains low interest rates, this “would be able to confide in the Fed’s ability to defend the value of money and reduce the attractiveness of the deformation of the debt assets labeled in dollars.”
Dalio is not the first to raise these concerns. On Monday, the president of the ECB, Christine Lagarde, expressed her concerns about the American economy. She warned that if Trump was to influence the decisions of the Fed interest rates, this would present a “very serious risk” for American and global economies.
Gold rises in long -term long -term
Dalio predicts that if the unilateral actions of the Trump administration are continuing, long-term bond yields of the United States will increase, the dollar will weaken and gold prices will climb. He noted that international investors have gone their assets from golden treasury obligations.
On September 2, the US performance of the 30 -year -old treasury bonds increased to 4.982%. Gold Futures closed the day to a record of $ 3,604 per ounce. While short -term bond yields have dropped due to the growing expectations of interest rate drops, long -term yields continue to increase.
Market players look carefully to see if these changes will feed an increase in the price of bitcoin. The Bitcoin price rallied alongside gold at the end of April when long -term bond yields jumped during an American tariff war.
