The post Dalio Warns Fed Stimulus is Feeding Late-Stage Economic Decay appeared on BitcoinEthereumNews.com. The US Federal Reserve’s decision to ease monetary policy is inflating an economic bubble that could drive up the prices of hard assets, but also marks the final phase of a 75-year economic cycle, according to former hedge fund manager Ray Dalio. Typically, the Federal Reserve eases interest rates when economic activity is stagnating or declining, asset prices are falling, unemployment is high and credit dries up, as seen during the Great Depression of the 1930s or the 2008 financial crisis, Dalio wrote in an article posted to X on Wednesday. However, the Fed is now easing monetary policy at a time of low unemployment, economic growth and rising asset markets, Dalio wrote, which is typical of late-stage economies saddled with too much debt.  Monetary stimulus is typically injected during times of falling inflation and lower asset prices. Source: Ray Dalio This “dangerous” combination is more inflationary, Dalio wrote, warning investors to keep an eye on upcoming fiscal and monetary decisions. “Because the fiscal side of government policy is now highly stimulative, due to huge existing debt outstanding and huge deficits financed with huge Treasury issuance — especially in relatively short maturities — quantitative easing would effectively monetize government debt rather than simply re-liquify the private system.” The continued inflationary pressure and currency debasement are positive catalysts for Bitcoin (BTC), gold and other store-of-value assets, which are seen as hedges against macroeconomic and geopolitical risks, including a reset of the global monetary order.   Related: ‘Debasement trade’ is no longer a debate, and TradFi knows it: Execs Investors are unsure about Fed’s next move “There were strongly differing views about how to proceed in December,” Federal Reserve Chair Jerome Powell said in October. “A further reduction in the policy rate at the December meeting is not a foregone conclusion — far… The post Dalio Warns Fed Stimulus is Feeding Late-Stage Economic Decay appeared on BitcoinEthereumNews.com. The US Federal Reserve’s decision to ease monetary policy is inflating an economic bubble that could drive up the prices of hard assets, but also marks the final phase of a 75-year economic cycle, according to former hedge fund manager Ray Dalio. Typically, the Federal Reserve eases interest rates when economic activity is stagnating or declining, asset prices are falling, unemployment is high and credit dries up, as seen during the Great Depression of the 1930s or the 2008 financial crisis, Dalio wrote in an article posted to X on Wednesday. However, the Fed is now easing monetary policy at a time of low unemployment, economic growth and rising asset markets, Dalio wrote, which is typical of late-stage economies saddled with too much debt.  Monetary stimulus is typically injected during times of falling inflation and lower asset prices. Source: Ray Dalio This “dangerous” combination is more inflationary, Dalio wrote, warning investors to keep an eye on upcoming fiscal and monetary decisions. “Because the fiscal side of government policy is now highly stimulative, due to huge existing debt outstanding and huge deficits financed with huge Treasury issuance — especially in relatively short maturities — quantitative easing would effectively monetize government debt rather than simply re-liquify the private system.” The continued inflationary pressure and currency debasement are positive catalysts for Bitcoin (BTC), gold and other store-of-value assets, which are seen as hedges against macroeconomic and geopolitical risks, including a reset of the global monetary order.   Related: ‘Debasement trade’ is no longer a debate, and TradFi knows it: Execs Investors are unsure about Fed’s next move “There were strongly differing views about how to proceed in December,” Federal Reserve Chair Jerome Powell said in October. “A further reduction in the policy rate at the December meeting is not a foregone conclusion — far…