Ray Dalio – we’re gonna get punched in the face

Ray Dalio is an American billionaire investor and hedge fund manager, He founded Bridgewater Associates in 1975 in New York.
(The following quotes are my transcript of an online discussion he had with Jeremy Grantham  (19th May Ray Dalio and GMO's Jeremy Grantham on How They're Seeing the World Right Nowhttps://www.youtube.com/watch?v=-qD4kqAarec)
We have been living in false paradise…
“This is the third year of the expansion with very aggressive monetary policy. So we’re in the part of the typical expansion where there’s a lot of inflation pressures because it happened in a giant, big way. It’s the end of a paradigm because everybody believes that they want everything to go up.
“And, of course, that creates a dynamic where policy is long (everything goes up). And, of course, that happens by creating money, credit and debt.”
Those who thought their financial claims will buy increasing amounts of real goods and services will be disappointed…
“Financial wealth has become enormous relative to the real wealth – everybody who was holding bonds or financial assets (they are just journal entries, they’re claims) in general believes that they can take that buying power and sell it and buy goods and services. And they can’t. And by necessity there must be real negative returns relative to buying power.”
High interest rates squeeze equities…
“So we’re now going to be in a very tight e