When debt is denominated in a currency the central bank can print, you always get the printing and the devaluation of money, after which the debt becomes cheap enough to pay off; holders of Japanese bonds lost ~80% relative to gold and ~60% relative to a US bond (3% less interest plus ~4%/year currency depreciation), and in extreme cases like Argentina the debt is repaid in worthless currency.

factualpending

Speaker

Ray Dalio

Evidence Quote

you got 3% less interest rates and the currency depreciated by almost 4% a year and that 7% a year is what you would lose

Source

Ray Dalio on AI, Job Loss & the Future of the Economy | EP #148Peter H. Diamandis
Created: 6/18/2026, 1:59:18 PM

My Notes

Loading notes...