 BRIAN O'KEEFE: You mentioned China. As an investor, you look at the fundamentals. We were chatting the other day, you said when you look at the fundamentals of the US versus China, it seems clear to you that China will grow faster. And you said that-- and written-- that you think there's a little bit of an anti-China bias that obscures that fact for many people. What gives you the conviction that China is primed to grow faster than the US going forward? RAYMOND DALIO: I've been going to China regularly since 1984. And I know the people, I'm intimately involved with policies and economic policymakers and so on. So it's through that intimate understanding and seeing how it's opening up. It's called state capitalism, but they'll produce more billionaires. I think probably capitalism and capital markets and the development of the capital markets could in a few years be more embraced in China-- I know they are embraced in China-- than in the United States. And so when you look at the inventiveness, I think it speak for itself. Since I started going there, per capita incomes have increased by 30 times. And all measures of power have increased a lot. And so they are educating, they're putting out eight times as many computer engineers, stem cell graduates, and so on. So it is a place where there's a vibrancy of creativity and the development of the capital markets. And if you look at monetary policy for example, there are three types of monetary policy. Monetary policy one, I call its interest rates. Monetary policy two is when interest rates don't work, it's quantitative easing-- print money and buy financial assets. Monetary policy three, which we're in, has the coordination of fiscal policy to get the money in the hands of those who need it, to target it by governments rather than to have a free market settle that. There's still at monetary policy one. Their interest rates are more attractive. The capital flow picture's more attractive. They're opening the capital account. Foreign investment can go in. And also, the world is underweight in Chinese assets. If you have a world that's overweight someplace and underweight someplace else, and that market's more attractive and is opening up, it benefits from flows. So you see, the exchange rate is relatively stronger and markets are relatively stronger. So that's how it looks to me. 

Raymond Dalio: China will grow faster than the U.S.

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