Billionaire who called cash 'trash' has a warning originally appeared on TheStreet.

Billionaire investor Ray Dalio believes the feud between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell comes down to one thing: the value of money.

In a post on X, Dalio said:

\\"While good central bankers try to get the balance right between being too easy and being too tight, looking at indicators of which way things are leaning to 'lean against the wind.' So, there is a natural tension between central bank leaders and those in office who want to make people happy and get re-elected.\\"

He explains that every country that takes on too much debt often lowers its interest rates and devalues its currency, which benefits people who borrow money but disadvantages those who save or lend money.

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In a July 24 post, Dalio explains:

\\"The classic way of dealing with it is to push real interest rates down and devalue money, which is bad for creditors and good for debtors. That is what Donald Trump is pushing for and what Jay Powell is defending against.\\"

This type of friction isn't unique, said the founder of Bridgewater Associates. Presidents often favour loose monetary policy - low interest rates and a high level of money in the economy - because it has a positive impact on the economy in the short term. Central bankers have the mandate to maintain low inflation and manage the economy, acting as an independent force.

Dalio also points out how much the U.S. dollar has lost value when compared to other assets over the past year. He says:

“Over the last year, the dollar was down 5% against a basket of other major currencies, down 27% against gold, and down 45% against Bitcoin.”

Over the past year, Bitcoin has surged by more than $52,911, reflecting growing investor interest in alternative stores of value amid ongoing economic uncertainty, as per charts. In contrast, the U.S. Dollar Index (DXY), which measures the dollar's strength against a basket of major currencies, has slipped by 0.02% during the same period.

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He further cautioned that the government will not take action to correct things until it is a real crisis. \\"History shows that strong steps to protect money's value usually only happen after serious pain,\\" he wrote.

Dalio has never been a cheerleader for the future of the dollar. Dalio told the media in 2023 that he owned Bitcoin and 'cash is trash' and said that he preferred Bitcoin to bonds. Later, that year, he also said that he \\"owns some Ethereum,\\".He views both assets as alternative forms of money in a world where the dollar is depreciating.

Billionaire who called cash 'trash' has a warning first appeared on TheStreet on Jul 24, 2025

This story was originally reported by TheStreet on Jul 24, 2025, where it first appeared.