"...The current debt loads are unsustainable, but there can be a large number of buyers for many years. The world has lots of liquidity and buying of Treasuries or Japanese bonds depends on what buyers can find. Dalio thinks that buyers will not stop until inflation signs pick up, since the alternatives could be worse. Dalio stresses that people must view the process through the perspective of the buyer.
Dalio says that the US must implement some austerity, but the Government has to worry about the social consequences. Another downturn could create class war-fare and bring to power an Adolf Hitler type of character. Hitler rose to power as Germany experienced terrible economic woes in the late 1920s and early 1930s.
Dalio is more worried about deflation than inflation.
Dalio believes that our politicians are not cognizant enough of these risks..."
at http://www.valuewalk.com/2012/09/ray-dalio-another-economic-decline-may-bring-a-hitler-type-to-power/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+valuewalk%2FtNbc+%28Value+Walk%29
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