Name: Ray Dalio is Preparing For A Crash Like 1929
Uploaded: 2026-01-06T08:09:40.000Z
Duration: 14 min 59 s
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Ray Dalio is preparing for a 1929 style crisis.

The only difference is that this time it is going to get a lot worse.

Adverbs of degree

There are so many similarities between today and 1920s that it's absolutely shocking.

The world in 1929 was completely different from the world in 1939.

And since we are living very similar days today, in a few years from now, the world is going to be a completely different place.

So listen very carefully because this is also going to present a very huge opportunity, a once in a lifetime opportunity that could make you ultra rich.

Historically, before 1930s, Great Britain was the only superpower that stabilized the world economy.

Usually there has been one country that had so much economic impact on the rest of the world that it would lead the world.

having one country that has so much influence over the world was always great because there was somebody that was leading the world.

But the problem is that back in 1931, Britain got so weak that it had to abandon the gold standard.

And the world was left without a superpower, without a country that could take the leadership.

Yes, the United States was already the largest economy, but it wasn't strong enough to take the leadership.

Today we are seeing very similar situations.

The United States can barely sustain its debts and mathematically the United States will never pay off its debts.

And a lot of people wondering why the rest of the world are not moving away from the US Debt.

Why is the US Treasuries or the US Bond market remains to be the largest market in the world?

The answer is very simple and straightforward.

Yes, China might have built the world's second largest economy, but

it's not yet in a position where it can take leadership from the United States.

And that's why the world was divided back in the days between the status quo, the countries that literally created the world order back in the days and that was the United Kingdom, France and the United States.

On the other side, there were few countries that did not like the status quo and they wanted to change the world order, which were Germany, Japan and Italy.

We have the G7 countries that are led by the United States.

And G7 countries created the modern world order that primarily benefits the United States and the US Allies.

But on the other side we have brics, countries that are like, we don't like this world order.

We would like to change the rules of the game that would also favor us or at least gives us equal opportunities.

And that's why they are building an alternative global financial system, for example.

The exact same story is repeating today, just like it was back in 1920s.

And each side was trying to win, especially the countries that wanted the status quo to continue.

That's why they started weaponizing trade by imposing tariffs on other nations.

You supposed to do business with countries and organizations that are beneficial to you.

But then when you realize that your security is at risk, suddenly you start imposing tariffs and, and

The United States is doing the exact same thing today.

The US right now is imposing very similar tariffs than it did back in 1930s in order to protect itself, bring American companies back to the United States to manufacture and punish American adversaries.

Before 1930s, the world was very connected.

But by 1920s, or I would say late 1920s and early 1930s, protectionism started to rise.

And each country suddenly began imposing very heavy tariffs and stopped trading with other countries and were pursuing self sufficiency.

And we see that dynamic happening today as well.

But most importantly, there was a disruptive technology that was reshaping the entire world.

Today we have AI and according to what we see, AI is going to fundamentally just change everything.

The way we live, the way we consume, the way we drive.

And whoever dominated, dominates AI well, is going to dominate the 21st century.

Back in 1920s, electricity was widely spreading all across the United States.

Without electricity, you cannot light up your house, you cannot drive your car, you cannot do anything.

Probably even the Internet is absolutely useless.

So just like electricity was widely spreading across the globe in 1920s, AI today is widely spreading and changing every single industry.

And these changes that we see has been happening in 1920s led to a change in the global monetary system.

And that changed to the global world order.

Back in 1920s, the world was on a gold standard.

So every single currency was backed by gold.

But the world did not like that because there are so many problems with gold from one side.

It seems like the perfect currency to use.

A lot of people, especially on the Internet, they like to make the argument that we have to go back to the gold standard.

But there is so much limited gold in the world that it restrains the economy.

You cannot possibly grow the economy when you have so much limited control of gold and you do not have a control over your currency.

And that's why, starting for example, in 1920s, the world is like, we have to move away from the gold standard into fiat currencies.

So one country after another, they started abandoning the gold standard.

It was A completely new financial system.

Instantly it created hyperinflations in many nations.

German hyperinflation, which is well known across the globe.

Austria, Hungary, Greece, China, all these countries instantly started to experience hyperinflation.

That's when prices rise by at least 50% annually.

In the case of Germany, by the end of the hyperinflation, people were carrying notes worth trillions of dollars.

Like hundreds of trillions of dollars in your pocket, which can barely buy you a loaf of bread.

Especially after the 2008 financial crisis.

The world is like, we want to move away from the US dollar just like the world was moving away from gold in 1920s.

The world after the 2008 financial crisis realized how dependent the global economy is on the dollar and it started to move away.

So this was the period when the world was trying to create systems or alternative systems to break away from that monopoly.

China created a system where you can transfer money from one place to into another, bypassing the US financial system.

So going back to 1920s, after a series of hyperinflation in 1920s, in 1931, the major blow comes up.

The United Kingdom, which was the most dominant economy, says that even the UK is going to abandon the gold standard.

Nobody could have even imagined that the UK is in such a huge financial trouble.

This is the empire that controls Canada, used to control the United States.

It has under its pockets Australia, India and so many other nations.

So this empire has enough gold, enough wealth to pay for anything.

But then in 1944 comes the biggest blow of all time.

The UK for the first time ever stops making debt payments and has accumulated so much debt and there is an interest to pay on that debt.

And when you do not have enough money to pay the interest on that debt, that is called a default.

The UK was even kicked out out of the US financial market because it was no longer making it is debt payments.

The United States admits that the US debt is unsustainable.

And based on this trajectory, the United States is, is going to get out of business.

We know that the United States is not going to pay off its debts, but

at least as long as the United States keeps making the interest payments, that is fine.

But based on all the data that we have, the United States cannot possibly continue doing that.

Like in 10 years from now, based on this trajectory, the total interest payments on the US debt will be about $4 trillion.

Just for the context that the total US budget today is about $5 trillion.

Let's assume that the budget is going to.

Let's assume that the tax revenues will rise to $7 trillion.

Can you imagine a functioning country where 50 to 70% of your entire money that comes from taxpayers is paid towards interest payments?

Today it's about 20%, which is already insane.