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Can the Fed Reduce Demand Without Breaking the Back of the Economy?
Ray Dalio: When there's a lot of debt, one man's debts are another man's financial assets. And so they will not be able to raise interest rates to a high enough level to adequately provide a real return to investors. We've shifted into an environment where assets that do well, like in the 70s, were best investments. So you're going to have an environment, I think, of negative real returns. Everything can't go up all the time. That system won't work that way.