🤔 Classic debt spiral - Ray Dalio

History shows that excess debt during an economic downturn triggers a self-sustaining cycle where:

1. The empire can no longer borrow to pay off debts.
2. A lot of new money is printed - the currency is depreciating, inflation is growing.
3. The standard of living is declining, political extremism is increasing.
4. A turbulent economy undermines productivity, the conflict over how to divide shrinking resources is exacerbated.
5. Populist leaders appear, promising to take everything under control and put things in order.

P.S. The U.S. State Debt now exceeds $38,100,000,000,000.

@Сryptoz ₿