“Break Down Of The Monetary System” – Ray Dalio FEARS Trump Tariff War May SPARK Global MELTDOWN
Episode Stats
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Summary
Ray Dalio: I'm worried about something worse than a recession. Jamie Dimon: We're heading into a recession and it's going to be worse than the Great Depression. Jay Sheinfeld: How to prepare for a recession, what to do if it happens, and how to deal with it.
Transcript
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Ray Dalio says, I'm worried about something worse than a recession.
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Okay, Rob, if you want to play this clip, and then we'll go to Jamie right afterwards.
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I think that right now we are at a decision-making point and very close to a recession.
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And I'm worried about something worse than a recession if this isn't handled well.
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A recession is two negative quarters of GDP, and whether it goes slightly there, we always
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We are going to change the monetary order because we cannot spend the amounts of money,
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And when we talk about the dollar and we talk about tariffs, we have that.
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We are having profound changes in our domestic order, how ruling is existing.
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And we're having profound changes in the world order.
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I've studied history, and this repeats over and over again.
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So if you take tariffs, if you take debt, if you take the rising power challenging the
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existing power, if you take those factors and look at the factors, those changes in the
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orders, the systems, are very, very disruptive.
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So he's saying something worse than a recession, which is what?
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After all of these incredible years of success and leadership in this great nation and the
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world, what tips do you want to give the younger generation who is coming up and watching you
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and wanting to learn how you achieved all of this?
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Don't get into the ecosystem of Democrats, Republicans.
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He gets to the recession clip in this clip, but it's very brief.
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You know, I learned a tremendous amount from talking to other people, not just from sitting
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If you don't take care of your mind, your body, your spirit, your soul, your friends,
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your family, you're not going to have a great life.
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You know, I grew up, you know, the way you treat people is you treat everyone fair and
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honest and forthright, whether it's a cab driver or a waiter or a CO.
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You know, it's just there's something about this guy that feels like he's always trying
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to say the right thing at the right time, you know, and always trying to seem like he's
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And I feel like, you know, I covered the 2008 TARP and TALF stuff for ABC News, okay?
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And I had worked in mezzanine finance before I got into this, and they didn't have a business
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And that guy was always saying what he needed to say for himself in that moment.
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But he always wanted to make it like he was there for the little guy and for the people.
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And that's, and I think he's full of shit, that guy.
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But there's something about him that really, like, I don't trust that he's coming from
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He just, he's too convenient with what he says.
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It makes me think that he's not anchored by anything.
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I also think he hedges everything with, we're headed to a recession.
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He's been saying we're headed to a recession for the past 20 years.
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Yeah, and he's going to be right at some point.
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Right, but as the market goes up and JP Morgan's stock goes up and Jamie Dimon looks smarter
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and smarter, if it does turn negative, he looks like he called a recession.
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But even this, bringing our trading partners closer as we build our military.
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Yes, of course you want your trading partners close.
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Churchill had a great reminder for FDR during World War II when FDR was vacillating.
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The only thing worse than fighting against your friends is fighting without them.
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That's what we're risking right now is going alone.
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And when we're, as a coalition with all these other countries, we're much more formidable,
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And I don't like two things that are coming our way right now.
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One, oh, turns out we have to spend a lot more money on military to compete with China.
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And the other thing we're going to hear is, you're right about all these concerns about
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That's not going to help the same people who are going to get hit by these tariffs if they're
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See, now I would say we would agree on tariffs and we'll disagree on tax.
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That would be the one way to energize the U.S. economy is allowing us to keep more of
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It's always been a great driver of spending and saving.
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You called it a middle class tax cut and they didn't get the money.
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Chris, I don't think there's a bad target to reduce a tax, whether it's corporate tax
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or individual personal income tax, lower level, high level, middle class, lower taxes, you
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And they just kept saying they paid for themselves.
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And the only way you can get to that, as you know, is if you include the pandemic money.
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Cut spending and go to the DOD and cut spending.
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We do not need to build up to compete with China.
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It's not like we're going to get a land war in Asia.
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If you can become fully, listen, oil is the lifeblood of the global economy, period.
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So drill, baby drill, lower taxes, and you don't have to worry about paying more in your
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tariffs when you send stuff to China than they send it this way.
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The best year of my life is the year I pay the most freaking taxes, okay?
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And my point is, if we are so strong, so powerful, our economy's pumping at $30, $40 trillion a
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Lower our taxes, lower our fuel prices, and we will compete on a global stage for the rest of
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One of the things I love about Pat and what he's doing here is the culture that's an extension
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Yeah, you got to be able to kick the ball and be a good team player.
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They are five to one STEM graduates over us, okay, per capita, five to one.
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We're not STEM activated here in our education.
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Kill the unions, and all of a sudden, things get better.
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I mean, the theory is free them up, just like the free market.
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Allow parents to take the money that the public school system is wasting on students
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and failing miserably at, and let them choose where the best schools are and where the best teachers are.
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I think you have to do what we don't want to do, which is what other cultures do,
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You have to test kids at different points as they're coming up and figure out who has the aptitude,
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and then put them on different courses like you see in other places.
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If you're that smart, Vinny, you're that good, I'll pay for your education.
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And you're going to give it back to me with what you do.
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We are not doing that in this country right now.
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And it's as big a part as anything we've talked about in the podcast up to this point as to what our concerns are with China.
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You're making the case to eliminate teachers' unions, Department of Education.
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Based on meritocracy rather than a union mandate.
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You know, you go back to the Gilded Age and you see how workers were doing and what the die rate was and child labor.
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The president says that's what we should go back to.
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Look, collective bargaining to me, I think, is a virtue.
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But what I'm saying is I don't care about what the mechanism is.
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You don't have enough smart people with the right kinds of educations in this country.
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You don't even have enough trade workers in this country.
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And we need to foster that is where we disagree.
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GDP drops two quarters because people aren't spending.
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Because they don't give enough time for these tactics to be come to fruition to get to the
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You know, a recession doesn't mean that the auto industry has been nuked.
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It just means that all the spending was down for two quarters.
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Now, I think there's a 20 percent chance that that could happen.
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But I'll tell you, I'm with Eric on the tax thing.
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Right now, we're about to cross, if we haven't crossed already, 1.3 trillion on consumer credit
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Records that are being set that the consumer shouldn't be setting.
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And so, and we have the cumulative effect of inflation.
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So a tax cut on those people helps moderate that.
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And I also agree with drill, baby drill, because I would, I would go after Anwar and I would
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pump the hell out of Anwar and I would be selling it to people that own our T-bills and I'd
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But right now, I think there's a 20 percent chance of a recession by definition, not by the
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redefinition they did under Biden, where they ignored the fact and worked around the
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Well, they took out food and energy to conveniently remove the two most volatile and spiking portions.
00:11:06.380
Without my wife and I, the average age, we have a very young, healthy household.
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A lot of you have been asking about the Cigar Lounge that you want to come to it.
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This last Friday was the biggest event we ever had at the Cigar Lounge, which was fantastic.
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Thursday, we're not doing a podcast in the morning.
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Thursday, we're doing a live podcast at our comedy club, at Cigar Lounge, 59.90 live.
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No matter whether you buy the regular ticket, the general, the premium, or VIP, if you get
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the ticket and you're there early, we're going to give private tours of the Cigar Lounge and
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I mean, it's going to be, if you've been to it before, it's a spectacle.
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The energy, the vibe, the announcements, different things that we do on a lot of people networking
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The website, Rob, if we can give them the website so some of the folks on Spotify can go to it
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So go lower, Rob, lower, lower for the tickets.
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VIP, you get a chance to actually go afterwards to the Cigar Lounge and we'll be with you guys.
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And we're doing it Thursday instead of Friday because Friday is Good Friday.
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If you've been to it before, typically the people that have been to it before, they know
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This year, we have fewer VIPs because platinum members get first on those seats.
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So if you want to have a VIP seat, hurry up and place your order and we'll see you guys
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