Bridgewater's Dalio Warns Fed QE Fueling Bubble, Monetizing Government Debt

Bridgewater Associates founder Ray Dalio said on Nov. 6 that the Federal Reserve's current quantitative easing constitutes "stimulus to a bubble," contrasting with past QE that served as "stimulus to a depression," BlockBeats reports. Dalio noted that Treasury supply exceeding demand, Fed bond purchases through money printing, and Treasury shortening debt maturity to address long-term bond demand shortfalls represent classic late-stage characteristics of a "big debt cycle." He characterized QE as effectively monetizing government debt rather than injecting liquidity into the private system, given highly stimulative fiscal policy driven by massive existing debt, large deficits, and substantial Treasury issuance at shorter maturities. Dalio described the current approach as a bold and dangerous bet on growth, particularly AI-driven growth, financed through highly accommodative fiscal, monetary, and regulatory policies.