US billionaire and hedge fund legend Ray Dalio is alarmed by the consequences of Trump’s economic policy-and warns of a possible collapse of the global order.
• Ray Dalio warns more than just one recession
• Trade war and debts threaten the world order
• Financial system could collapse – however, this is still avoidable
The renowned US investor and founder of the world’s largest hedge fund Bridewater Associates, Ray Dalio, urges the economic and geopolitical consequences of current global developments. In a much -noticed interview with NBC News’ “Meet the Press”, the billionaire said on April 13, 2025: “At the moment we are at a decision point and very close to a recession. […] And I’m worried about something worse than a recession if it is not handled well. ”
The statements of the legendary investor relate to the increasing tensions between the USA and China, which were massively fueled by Trump’s trade tariffs. Dalio criticizes that these economic policy measures would have a “very disturbing” effect. The implementation is “like throwing stones into the production system”. The damage to global efficiency could be enormous.
Ray Dalio warns of fundamental dangers for the global economic system
Dalio not only warns short -term economic descents, but also sees profound structural risks: a possible collapse of the global currency regulations, increasing debt of the USA and geopolitical shift in power could falter the fragile balance of the post -war order.
“We move away from multilateralism – a world planning system largely characterized by the USA – towards a unilateral world order in which there is great conflicts,” said Dalio in an interview. This development is accompanied by five historical forces: business, internal political conflicts, international order, technological upheavals and natural disasters such as pandemics. If these forces are not controlled properly, a global system shock threatens.
Commercial war and debt crisis: an explosive mix?
Above all, the trade war between the United States and China is at the center of Dalios. Trump’s customs policy has comprehensible goals, but is implemented in a way that stir up conflicts and endanger international stability. High tariffs have recently been announced on Chinese goods – but at the same time granted short -term exceptions for certain consumer goods such as smartphones and computers. This is unsure of stock markets and companies alike.
At the same time, Dalio warns an urgent budget consolidation. The US Congress must reduce the budget deficit to 3 percent of gross domestic product, said Dalio. Otherwise, a “offer demand problem when it comes to debt”, which together with other crisis factors could exceed a classic recession.
Dalios wake -up call to world politics: The value of the money could be at stake
Dalio even sees the basic value of money in danger. According to the financial expert, a possible collapse of the bond market, coupled with geopolitical tensions and domestic unrest, could have more dramatic consequences than the abolition of the gold standard in 1971 – also known as Nixon shock – or the global financial crisis 2008. “It is getting very serious,” he warned.
Nevertheless, Dalio is not completely pessimistic: this change is avoidable, he emphasized in an interview with NBC News. To do this, however, politicians would have to work together across partys in order to reduce the deficit and at the same time pursue a clever, cooperative foreign trade policy. Ray Dalios warning words could be interpreted as a wake -up call for politicians, investors and central banks worldwide. However, whether this appeal is heard remains open.
Editor finance.net
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