Ray Dalio emphasizes that for China to revitalize its economy, it must implement a 'beautiful deleveraging,' which includes restructuring bad debts and significantly lowering interest rates.
Dalio warns that without prompt action, China risks experiencing an economic downturn similar to Japan's Lost Decade, unless significant policy changes are made soon.
He highlights that while recent stimulus measures have sparked optimism, they are insufficient for sustainable growth without aggressive actions to address the debt crisis.
Dalio’s concept of 'beautiful deleveraging' involves spreading out bad debts to protect borrowers and includes radical interest rate cuts to rejuvenate lending.
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