Ray Dalio: Printing Money
on Sunday, May 31, 2020Ray Dalio Money Quote saying monopoly money and monopoly bankers who redistribute money to monopoly players. Ray Dalio said:
“Printing money is the most expedient, least well-understood, and most common big way of restructuring debts. It’s like playing Monopoly in a way where the banker can make more money and redistribute it to everyone when too many of the players are going broke and getting angry” — Ray Dalio
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In this quote, Ray Dalio seems to be drawing an analogy between government monetary policy and the board game Monopoly. A few key points:
- He notes that printing or creating more money is a common yet poorly understood method governments use to restructure large debt loads.
- Dalio likens this to the Monopoly banker’s ability to simply generate more paper money to redistribute when many players start going bankrupt.
- The implication is that increasing the money supply, like the banker providing bailouts in Monopoly, acts as a way to temporarily resolve debt crises and prevent anger from widespread defaults.
- However, Dalio appears to be suggesting this approach amounts to an expedient workaround rather than a real solution, and risks inflation down the line like in the game.
Overall, the quote conveys Dalio’s view that monetary stimulus and bailouts function similarly to a short-term patch in Monopoly, even if their long-term economic effects are misunderstood. The analogy paints money printing as an incomplete fix for debt problems.