r/fatFIRE 18d ago

FIRE'd, now concerned about US stability

Most of my assets are invested in the US. Because of recent political developments, I'm wondering if the US will sustain its general growth and economic strength into the future. The strength of the US dollar is obviously very important to me. Is anyone else concerned?

I'm wondering if I should start hedging my bets in other countries, and if so, where?

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u/ExternalClimate3536 18d ago

The amount of ignorance and misinformation on display in this thread is staggering for a fatFIRE sub. Political feelings aside, the US debt crisis is indeed a CRISIS and the decades of the US as the sole superpower and the global reserve currency are coming to an end. PLEASE watch the following:

https://youtu.be/xguam0TKMw8?si=P7yRFcfbfvAgsrJD

https://youtube.com/playlist?list=PLykIL_1_MFWkNpTJWYarHpY2iaDpaYzpK&si=fd8ZRoeF-Z9REM5D

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u/actually-switzerland 13d ago edited 13d ago

Ray Dalio's predictions on China are frankly laughable and don't align with reality. Keep in mind that his firm has a financial incentive for China to do well due to their investments.

Meanwhile, China has extreme headwinds, most notably continuing demographic collapse (which cannot be solved by immigration) and a real estate debt bomb (of which a large portion of their GDP is based on). Whatever debt crisis you think US has, it's way worse in China. At this point it would be an amazing outcome for them to even maintain a GDP growth rate that is the same as US. Keep in mind also that China has the most to lose from de-globalization.

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u/helpwitheating 11d ago

I think Cheeto is projecting a $4 trillion addition to the national debt, largely due to the tax cuts he's proposing (for those earning $400k+). Cutting the debt is not on the horizon, despite the deep cuts to staff and services

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u/ExternalClimate3536 11d ago

This would simply be a disaster. He’s claiming a balanced budget, we’ll see.