One man's debt is another man's asset, so when debts rise quickly someone must buy that debt, and they buy based on expected returns. When debt relative to GDP is high, central banks face a difficult balancing act: they must keep interest rates high enough to be attractive to creditors but not so high that they harm debtors, and when they cannot maintain this balance they resort to printing money.
causalpending
Speaker
Ray DalioEvidence Quote
“one man's debts are another man's assets...what they do when they reach an imbalance is they print money [3:37-4:41]”
Created: 8/11/2026, 8:00:09 AM
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