Ray Dalio is worried that long-term interest rates are headed down to 0 percent, quantitative easing won’t work, and politicians do not know how to stem the crisis.
As a result, real interest rates will likely rise “because there will be disinflation or deflation resulting from lower oil and other commodity prices, economic weakness, and more credit problems,” Dalio warned in a report dated March 13 and obtained by Institutional Investor.
If
