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Dalio Predicts Weaker Dollar due to Budget Deficit Financing

Annie Gilroy
Dalio Predicts Weaker Dollar due to Budget Deficit Financing

The budget balance is the difference between what a country’s government garners from taxes and other sources and what it spends. A budget deficit occurs when spending exceeds earnings. In such a situation, the government borrows money from its citizens as well as foreign entities. As this debt accumulates, it’s possible that the value of its currency could decrease. The US (SPY) (VTI) budget deficit is creeping up.