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RAY DALIO Lays Out How DOGE Can Save America From a Debt Spiral

February 12, 202501:03
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the solution is you must cut the deficit
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down to 3% of GDP and it's 7 and a half%
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expected that's about 900 billion a year
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and that means cutting the deficit by
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more than half do it soon when the
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econom is good in other words do it now
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now if you have a bad economy you you
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cannot do it and recognize that you have
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to own the number the other thing about
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it is to realize that if you make those
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moves the bond market will benefit
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interest rates will go down right if the
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federal government were to cut spending
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significantly and quickly the market
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would naturally react to lower rates
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that's right the longer we wait the more
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you have to cut in the future to get out
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of the hole and ultimately this is the
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arithmetic death spiral that you get
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into So the faster you do it the less
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you have to cut right I think that is so
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important for any person in government
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listening the faster you cut the less
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you have to cut

Podspun Insights

In this episode, the discussion dives deep into the intricacies of economic policy, focusing on the urgent need to reduce the deficit to 3% of GDP. The conversation highlights the stark reality of a looming financial crisis, emphasizing that the current deficit of 7.5%—approximately $900 billion a year—requires immediate action. The speaker passionately argues that swift cuts in government spending can lead to a healthier bond market and lower interest rates, creating a ripple effect that benefits the economy. The urgency of the message is palpable, as they stress that delaying these necessary cuts only exacerbates the problem, leading to a more severe future reckoning. This episode is not just a dry economic lecture; it’s a call to action, blending intellectual rigor with a sense of impending urgency that resonates emotionally with listeners who care about the future of fiscal policy.

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Episode Highlights

  • The Cost of Delay
    Delaying cuts leads to a larger future burden, creating an 'arithmetic death spiral.'
    “The longer we wait, the more you have to cut in the future.”
    @ 00m 44s
    February 12, 2025

Episode Quotes

Key Moments

  • Economic Consequences00:51
  • Urgency of Cuts00:55