Billionaire investor claims central banks are stimulating economy

Ray Dalio, billionaire investor and founder of IT company Bridgewater Associates, said that the actions taken by central banks like the US Fed after the financial crisis of 2008, demonstrate that capital markets are no longer independent

Traditional assessment method cannot be applied to cash

The billionaire believes the Federal Reserve no longer work in conditions of standard economic system but it has become a real market maker. Furthermore, according to Ray, the cash evaluation method is no longer relevant, and this will make the US dollar less attractive as a reserve currency.

Financial markets aren’t independent any more as they are governed by changing priorities of central banks regarding assets they buy and sell.

Their priorities that touch property, no matter whether they buy or sell, do not coincide with the classic definition of an independent market. Thus, the global economy and markets are determined in the first place by the property rights of central banks.