Time to Tobin tax Ray Dalio out of China

It sounds like Ray Dalio is happy to invest in any regime no matter how egregious:

Mitt Romney has it:

If Mr Dalio is so keen on following “the rules” then the free world should give him some and apply a massive Tobin tax to his (and all) China investments.

It’s preposterous allowing Wall St to recycle free world savings as weapons aimed at freedom.

Houses and Holes
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  1. Dalio would no doubt have been a frequent visiter to Germany in the 1930s, praising their autobahns and disciplined society and the leadership of Herr Hitler.


    • Mic SmithMEMBER

      Well said. It is all rationalized away while they are making money. But us poor suckers will have to fight the inevitable war.

  2. Great comment on this from the Washington Post:

    “Dalio, a long time believer that China sits at the center of global economic growth, added that the Chinese leadership behaved like a “strict parent” toward Chinese people.
    Sure, just like any caring parent who, when their daughter came to them saying she was raped, would shut her in a closet & say “Shut up!”

    • Sure, just like any caring parent who, when their daughter came to them saying she was raped, would shut her in a closet & say “Shut up!”

      Say, like Bob Hawke?

  3. pfh007.comMEMBER

    A Tobin Tax on Dalio’s investments in China??

    Instead of deploying sensible policy ideas in such an idiosyncratic way, why not put a Tobin Tax on all capital movements in and out of all countries and pull the plug on the more extreme end of the speculative capital flow game?

    I appreciate the financial sector parasites will howl at the moon but it is not as though we should be counting their non-contributions in GDP anyway.

    Oh and this would be in addition to my usual recommendations regarding reducing unproductive capital inflows. Like the ones that our predatory trade partners use against us but we are too dim to resist.

  4. When you are too afraid to actually say out loud what the problem is. You may as well put hidden video of Indonesian abattoirs for the Kimberley live cattle trade.

    I took part in one of the first ever publications of ESG investment in Australia, over 10 years ago.

    Trying to effect the “E” and the “S” at an investment level is counter productive, there is still queries about “G”.

    If China’s ways are that much of a problem, then do it at the consumer level.

      • You apply taxes, or prohibitive legislation… or the consumer just outright elects not to consume, ‘unethical’ sources of product.

        The problem with ESG investing is that by certain segments electing not to invest, therefore reducing demand, the product of company equity in this instance becomes cheaper. i.e. So if Dalio chooses not to invest, an investor even less ethical than Dalio will pick up a company even cheaper, and get a greater return, hence ‘wins’ at the game, and becomes an even more prolific investor. It’s ends up playing as a type of game theory, bad money chasing out the good.

        It does not matter the price of the investment, a business cannot succeed if it cannot sell product for a profit.

        If taxes are placed on the product, or it its just outright prohibited from accessing a market, or if the consumer really is so scrupulous as to individually boycott it, then it cannot or will not be consumed as an optimal market transaction.

  5. I am pretty sure I know why Ray Dalio is so bulled-up on China – and why he got smoked in 2020 because of China. I suspect that China Investment Corporation (CIC), the Chinese Sovereign Wealth Fund, are a major investor in Bridgewater.

    The fact he got so badly mauled on COVID-19 last year was just remarkable for a guy who claims to be a China expert. Personally, I’ve covered China as an economist, trader and strategist for 21 years – my first trip to Beijing was to see the PBoC and deliver a presentation at their request on “What is FX”, which appears remarkable today but back then, not so much… and it didn’t take much of a rocket scientist to work out the sh&t was about to hit the fan, all you needed to do was go there (which I did) and see for yourself.

    So, why his pandering to the Panda? His Kowtow? Simple, they ‘own’ this guy…

    Personally, I wouldn’t touch his firm with a 40-foot pole.

  6. Ronin8317MEMBER

    The guy is not stupid, but he thinks everyone else is.

    乐只君子,民之父母 (“The good Emperor is the father of the people”) is from 大学 (The Great Learning), a book written in 500BC. Basically the propaganda says that people should obey the government, and the government will take care of you. In modern China, enforcement is through the barrel of a gun, but “If you disobeying we’ll harvest your organ” isn’t a catchy slogan. Mind you, China have a lower incarceration rate than USA, so freedom doesn’t exists there either if you have no money.

    • I'll have anotherMEMBER

      A majority of people in the US gaols are guilty of a crime.

      I remember a stat along the lines of “99.9% of defendents are found guilty in the Chinese criminal system”.

      I think when the US decriminalises marijuana, the US incarceration rates will fall rapidly.

      I believe Biden won’t help that cause though as he is the man who came up with the legislation that keeps the pot offenders locked up.

      • Who cares about China when it was the same Corporate individuals that ran to China for individual riches and glory … houses in the Hampton’s are not cheap nor are mega yachts ….

        • same one’s that buy tsarist debt and sit in Russian senate. same one’s that married Saudi wife’s and sell weapons, same one’s that can’t stop grafting enough to win a war on the worlds poorest people. The same one’s that sent industry to China and appointed / removed Trump.

        • “Best bit is they are the same ones that fund right wing think tanks …”

          or control the gatekeepers, depending on your point of view…..

      • Like you don’t remember when Keating sold Australia off to anglophone investors after doing the Brazil treatment to entice international absentee investors/PE to reform it.

        Cry in your beer …

    • But the world was to be a better place if investors made all the big sovereign social issues e.g. democracy of money, EMH, rational agent models, IS-LM, government should be run like a business [circa 80s meme], pay to play, skin in the game, survival of the fittest, meritocracy, goat does captain picks, share holder value, freedom and liberty, and best of all the rich should be worshiped blindly ….

  7. Allianz – the very large insurance group has just obtained permission to set up China’s first wholly foreign owned Life Insurance Company. Many other companies and individuals are taking advantage of the opportunities available there.
    Allianz , Mr Dalio and a host of others live in the real world.
    Australia’s Panda Pokers are not acting in the national interest.