Ray Dalio Discusses Inflation, the Approaching Recession, and McDonald’s McNuggets

by | Nov 12, 2023 | Invest During Inflation | 17 comments

Ray Dalio Discusses Inflation, the Approaching Recession, and McDonald’s McNuggets




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Ray Dalio is the founder and co-chief investment officer of Bridgewater, the largest hedge fund in the world. He’s one of the 100 richest people on Earth. He’s also a best-selling author.

In this interview from The Hustle Daily Show, Zachary Crockett chats with Dalio about his latest book, “The Changing World Order,” which uses a historical lens to examine why empires rise and fall — and why the US may be showing some signs of decline.

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A daily dose of irreverent, offbeat, and informative takes on business & tech news. Hosted by Zachary Crockett, Juliet Bennett Rylah, Jacob Cohen, and Rob Litterst from The Hustle….(read more)


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Ray Dalio On Inflation, the Impending Recession, and McDonald’s McNuggets

Renowned investor Ray Dalio has recently expressed his concerns about inflation and the possibility of an impending recession. In a recent interview, Dalio warned that the United States could be heading towards a period of stagflation, a combination of slow economic growth and high inflation. This stark warning comes at a time when the global economy is still grappling with the aftermath of the COVID-19 pandemic.

Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, is known for his insightful analysis of economic trends and his ability to predict market movements. His warning about stagflation has raised eyebrows among investors and policymakers, as it carries significant implications for the future of the global economy.

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In the interview, Dalio pointed to several factors that could contribute to a period of stagflation, including massive government spending, supply chain disruptions, and a slowdown in productivity growth. He also highlighted the potential impact of rising wages and higher commodity prices on inflation. According to Dalio, these factors could create a challenging economic environment, with slower growth and higher prices for consumers.

As investors and policymakers grapple with the prospect of stagflation, Dalio’s warnings have underscored the importance of understanding and preparing for potential economic challenges. In particular, his insights have drawn attention to the need for a proactive approach to managing inflation and recession risks.

One intriguing insight from Dalio’s interview is his comparison of stagflation to a particular item on the menu at McDonald’s: McNuggets. According to Dalio, stagflation is like a “McNugget of an economic environment” – it’s a rare combination of ingredients that can catch people off guard. This analogy serves as a reminder that economic phenomena like stagflation are complex and multifaceted, requiring a nuanced understanding and response.

In the face of potential economic challenges, Dalio’s warnings serve as a call to action for investors, businesses, and policymakers. It’s crucial to assess and address the factors that could contribute to stagflation, including government policies, supply chain disruptions, and changes in consumer behavior. By taking a proactive and strategic approach, it’s possible to mitigate the impact of stagflation and navigate through economic uncertainty.

In summary, Ray Dalio’s warnings about inflation, the impending recession, and the analogy of McDonald’s McNuggets highlight the need for vigilance and preparedness in the face of potential economic challenges. As investors and policymakers work to navigate through uncertain times, Dalio’s insights serve as a valuable guide for understanding and addressing the complex interplay of economic forces. By taking heed of his warnings and embracing a proactive approach, it’s possible to navigate through the economic environment and emerge stronger on the other side.

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17 Comments

  1. E T

    it is very difficult for business to avoid the temptation to hire foreign specialists – they cost less. This, and only this prevents wage rise. By controlling the borders, the cost (and wage) of most workers would go up. The profit of the capitalist will go down. We had at least twenty years of low wage. Of course the other factor is that most staple goods are produced overseas, this also has an effect on US employment and wages, but – in my opinion – it is secondary. We still have many US based industries, and we do need skilled workers. If they could not come from outside of the country, then they would be developed, trained, paid higher wages in this country.

  2. David Coard

    Crating more educational opportunities may aggravate social conflict. If more graduates on the jobs market but no increase in elite job vacancies then you have an embittered educated section amongst youth. Read Peter Turchin.

  3. John

    Props to you…..asking thought provoking questions 🙂

  4. Amanda Young

    Tax the Rich, the poor are suffering

  5. CAS

    too many cuts , so doesnt come accross as genuine, why edit ?

  6. Soumya Dadi

    This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!

  7. Kevin Potate

    instead of taxes, just raise wages but hold prices down. Same effect but easier to track. In short you cut profits but for everyone equally therefore no corp is displaced

  8. glockumollie

    LARGE AMOUNTS OF CASH IN BANK ACCOUNTS OF ANY KIND IS ECONOMIC SUICIDE. NO MORE THAN SIX TO TWELVE MONTHS TOTAL BILLS, OPERATING COST TO BE IN BANK ACCOUNTS. AFTER THAT GET CASH OUT OF PAPER ASSETS AND CONVERT TO HARD ASSETS, GOLD, SILVER AND REAL ESTATE.

  9. Edna

    In light of the impending recession and the fact that inflation is still far higher than the Fed's 2% target, several of the most prominent market analysts have been expressing their views on how terrible they believe the next downturn will be and how far stocks may have to fall. I need advice on what investments to make because I'm attempting to create a portfolio for my children that will at least be $850k in value.

  10. Luke Spector

    All I can afford is better hair. Only that………….

  11. Elias H

    The only thing that bothers me about Dalio is his talk of fair society excludes any criticism of the unfairness being dished out by the Chinese communist party by way of genocide and also the bipartisan support for pogroms in Israel.

    Which is basically normalizing the embedded extremism within the power structure

  12. John Williams

    Debt…snd inflation..is not growth. Real economy..is south of 10..trillion..

  13. StephenO

    Maybe some one should educate Mr. Dalio that what we have had since 1980 is a repudiation of Capitalism. What we have had is Crony-Capitalism. What we need to get back to IS Capitalism. We need to SEVERELY restrain government, NOT Capitalism. This is just typical pandering.

  14. Lina Chen

    Excellent interview!

  15. Dhanabal Shanmugam

    Fantastic discussion!! Very thoughtful questions from the interviewer…

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