Thursday, May 14, 2015

Ray Dalio - Comments on gold portfolio allocation - Excerpt from interview with CFR

Ray Dalio of Bridgewater Associates sounds like a lunatic gold bug in this interview.  The problem with that assumption is Bridgewater happens to be the largest hedge fund in the world, with $150 billion of assets under management.  Dalio has (Wall Street) credibility and is widely respected.

The venue is also interesting.  This interview took place at the powerful and influential Council on Foreign Relations conference.  According to conspiracy theorists and the paleoconservative John Birch Society, the CFR is "Guilty of conspiring with others to build a one world government..."  The CFR has traditionally been negatively biased against gold, as it poses a threat to fiat currencies.  Furthermore, a gold standard hampers central bankers' capability to create unlimited currency units (and credit) out of thin air.

Hence, it is surprising that the CFR gave Dalio the microphone to spread some truth about gold.  The powers-that-be must have gone ballistic, as one of their own went off the reservation.

"If you dont own gold...there is no sensible reason other than you don't know history or you don't know the economics of it." - Ray Dalio

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