{"id":41276,"date":"2018-12-05T06:33:39","date_gmt":"2018-12-05T11:33:39","guid":{"rendered":"https:\/\/olduvai.ca\/?p=41276"},"modified":"2018-12-05T06:33:39","modified_gmt":"2018-12-05T11:33:39","slug":"the-art-of-defaulting","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=41276","title":{"rendered":"The Art of Defaulting"},"content":{"rendered":"
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The Art of Defaulting<\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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\u2026 the debt-financed overspending of the 1960s had continued into the early 1970s. The Fed had funded this spending with easy-credit policies, but by paying back its debts with depreciated paper money instead of gold-backed dollars, the U.S. effectively defaulted.<\/p>\n

Ray Dalio<\/p>\n

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Principles for navigating big debt crises<\/strong><\/p>\n

Ray Dalio of Bridgewater Associates is one of my role models in life and, when he writes a new book, I would normally visit Amazon.co.uk more quickly than you can count to ten, but not this time!<\/p>\n

What? Have I fallen out of love with Ray\u2019s way of thinking? Not at all, but I found out that his new book \u2013 Principles for Navigating Big Debt Crises \u2013 can actually be downloaded for free. Ray, being the class act he is, has decided that everybody should know how to navigate a debt crisis; hence he has chosen to make it freely available (as a PDF copy).<\/p>\n

Much (but not all) of the content below is inspired by Ray\u2019s thinking. He is not as explicit in his new book as I am below (and as he has been before) in terms of the timing of the next debt crisis, but it\u2019s pretty clear that he also thinks the writing is on the wall.<\/p>\n

If you want to read the wise words of a very<\/em> smart man, I suggest you give yourself one for Christmas, which you can do here<\/strong><\/a>. Christmas presents rarely come cheaper than this.<\/p>\n

Debt crises of different sorts<\/strong><\/p>\n

In the following, I will focus on what Ray calls major debt crises \u2013 crises that have caused a slump in GDP of at least 3% but, in reality, there are different types of major debt crises.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Art of Defaulting \u2026 the debt-financed overspending of the 1960s had continued into the early 1970s. The Fed had funded this spending with easy-credit policies, but by paying back its debts with depreciated paper money instead of gold-backed dollars, the U.S. effectively defaulted. Ray Dalio Principles for navigating big debt crises Ray Dalio of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[23349,122,175,7783,195,200,303,23348,1100,7888,3650],"class_list":["post-41276","post","type-post","status-publish","format-standard","hentry","category-economics","tag-absolute-return-letter","tag-central-bank","tag-credit","tag-credit-expansion","tag-debt","tag-default","tag-fed","tag-niels-clemen-jensen","tag-paper-money","tag-ray-dalio","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41276"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41276\/revisions"}],"predecessor-version":[{"id":41277,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41276\/revisions\/41277"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}