On April 7, Ray Dalio, founder of the Bridge Water Fund, once again made a "no-cut" statement on cash, arguing that other assets are more valuable than cash in the context of the "big release" of global central banks. In January, Dario shouted that "cash is rubbish", but then experienced a collapse in global markets.

Dario once again shouted that "cash is rubbish" and is expected to be unable to maintain its value in times of inflation.

As central banks around the world print money on a large scale and keep interest rates low to cope with the impact of black swans, investors can choose to hold assets other than cash, Dario said at the social news site Reddit Ask Me Anything on April 7.

"keep in mind that while the value of cash is not as volatile as other assets, its negative returns are costly," says Mr Dario. So, I still thinkCash is rubbish relative to other options, especially those that can maintain or increase their value during periods of reflation (for example, gold and some stocks).。」

Mr Dario's speech comes at a time when global market risk sentiment has been repaired. In April, as countries stepped up policy stimulus and expectations of black swans improved, US stocks rebounded from their March lows, with the Dow Jones Industrial average closing up 18.15 per cent from its March 23 low as of April 7; the European STOXX50 index was up 11.2 per cent from its March 16 low.

On the other hand, Dario believes the dollar has an advantage, even though the Fed launched an open-ended QE in March and set interest rates at zero. He said that because most people around the world still use dollars for saving and trading, at least for now, the dollar is facing strong demand.

In addition, Dario believes that the flood of water by the world's central banks will make bonds unattractive. "I believeMore and more bondholders will question whether their debt assets can perform their hedging function well in the context of negative real and nominal interest rates and large amounts of money printed by global central banks.。「

It is worth noting that Dario shouted on January 21 that "cash is garbage", but then global markets suffered a panic sell-off under the impact of black swans, with people selling everything they could sell to hoard cash. U. S. stocks tumbled in March, triggering four circuit breakers, while the dollar index climbed to a high of 103.0108 on March 20.

Central banks around the world start the "money printing" mode, which may be a road of no return.

In response to the Black Swan shock, central banks around the world, such as the Federal Reserve, have pledged to make large-scale asset purchases and provide cheap credit to companies and banks in addition to cutting interest rates.

But now, industry insiders, including Dario, worry that central banks around the world are accustomed to large-scale water release, making "money printing" the norm after the end of the black swan.Dario said that the end of the global central bank's road to "printing money" depends on the rebound in the economy, and until that time comes, holding gold will help investors resist negative interest rates and currency depreciation.

Albert Edwards Lifesciences Corp, strategist at Societe Generale, saidThe impact of the black swan on the economy has led to a rapid and shocking change in global economic policy and will not look back.. As the "co-ordination" of monetary and fiscal policy becomes the mantra of the central bank, people will get used to the "new era" of central bank financing to the government.

In this round of "big water release", the world's major central banks abandoned past expressions of restrictions on the time and scale of QE and began to talk more or less about permanent QE: for example, the Fed said in March that "approved purchases of Treasuries and mortgage bonds would be unlimited", while the ECB lifted structural restrictions on bond purchases of 750 billion euros of PEPP. This means that governments and companies can delay some of their debt payments indefinitely as long as the central bank keeps buying.

But at the same time, some central banks refuse to adopt this "indefinite money printing" model. Andrew Bailey, governor of the Bank of England, said on April 5th thatThe Bank of England will not adopt an irreversible way of printing money to finance a surge in government spending. Although the Bank of England announced in March that it would expand its debt-buying programme to £645 billion in response to the recession, Mr Bailey stressed that the central bank had not given up its long-standing concerns about monetary financing.

Bailey saidThe use of monetary financing will undermine the independence of the central bank, thereby undermining its credibility in controlling inflation.. The Bank of England still has full control over how and when it expands its bond purchases and will not allow its 2 per cent inflation target to be threatened. If the recent expansion of bond purchases threatens this goal, the MPC will respond.

In fact, this round of policies by global central banks to deal with the impact of black swans have also issued a lot of concerns.There are fears that the increase in government spending will eventually lead to higher inflation under the "unlimited cover" of the central bank, and even lead to a repeat of the catastrophic hyperinflation in Germany in the 1930s and Zimbabwe in the 1990s.