The dollar’s long-standing position as global reserve currency is in danger because of the “steps the U.S. has taken to support its economy during the Covid-19 pandemic,” says Bridgewater founder Ray Dalio. This according to a recent Bloomberg article. 

In an interview with Bloomberg Television, Dalio said that although equities and gold benefited from trillions in fiscal spending and monetary stimulus, the support is debasing the dollar and has raised the possibility that the U.S. will “push the limits, adding, “There is so much debt production and debt monetization.”

In July, Dalio said that investors should favor stocks and gold over bonds and cash because of the latter’s negative return—the article reports that Bridgewater (which manages about $148 billion) has been moving into gold and inflation protected bonds in its All Weather portfolio, “diversifying the countries it invests in and finding more stocks with stable cash flow.”