Billionaire investor Ray Dalio believes the UK’s economic strategy “suggests incompetence.”

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Dalio has joined a rising chorus of economists denouncing Liz Truss’ administration’s proposed policies.

The founder of Bridgewater Associates, one of the world’s largest hedge funds, stated that running large deficits does not create wealth since a government requires lenders ready to hold that debt.

According to billionaire investor Ray Dalio, the financial market upheaval caused by the UK government’s spending plan “suggests incompetence.”

I can’t think this is meant – and if it isn’t, it’s an understanding question,” Dalio said on BBC Radio 4’s Today” programme on Wednesday.

His remarks alluded to the market turmoil that accompanied Finance Minister Kwasi Kwarteng’s fiscal announcements late last week. The proposals contained substantial swaths of unfunded tax cuts, which drew international condemnation, especially from the International Monetary Fund.

The Bank of England intervened on Wednesday to try to calm markets, announcing that it will buy government bonds on a temporary basis to help “establish orderly market conditions.”

Dalio has joined a rising chorus of economists denouncing Liz Truss’ administration’s proposed policies.

The founder of Bridgewater Associates, one of the world’s largest hedge funds, stated that running large deficits does not create wealth since a government requires lenders ready to hold that debt.

It does not promote the economy; rather, productivity stimulates the economy in the long run,” Dalio explained.

I would assume the government would grasp the mechanics of that, which is why it’s disturbing, Dalio added.

PC: Finnoexpert

Dalio wrote on Twitter that the panic selling that drove the drop in UK bonds, pound, and financial assets was “due to the awareness that the large supply of debt that the government will have to sell is simply too much for the demand.”

This causes people to want to get out of debt and currency.” I don’t understand how individuals in charge of this relocation didn’t realise this. “It implies ineptitude,” he added.

The U.K. Treasury said Monday that the government would set out its medium-term fiscal plan on Nov. 23.

Jonathan Portes, professor of economics and public policy at King’s College London, told CNBC on Wednesday that the U.K. government’s spending plans put the country’s debt and deficit “on an unsustainable path.”

It has rightly, I think, been regarded by economists across the political spectrum as unnecessary and damaging,” Portes told CNBC’s “Squawk Box Europe.

The UK Treasury announced Monday that the government will release its medium-term fiscal plan on November 23.

According to Jonathan Portes, professor of economics and public policy at King’s College London, the UK government’s spending plans set the country’s debt and deficit “on an unsustainable course.”

It has correctly been considered as superfluous and detrimental by economists across the political spectrum, Portes said on CNBC’s “Squawk Box Europe.

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