Bridgewater founder Ray Dalio: The global monetary order is 'about to collapse'
Source: Cointelegraph
Original: (Bridgewater founder Ray Dalio: The global monetary order is 'about to collapse')
Legendary investor Ray Dalio stated that the global monetary order is 'about to collapse,' a process driven by tariff interventions from the Trump administration.
Dalio pointed out in a post on platform X on April 28 that trade tensions are undermining currency, politics, and the international order, pushing the process of de-globalization and unsustainable trade imbalances. He previously served as the CEO of the hedge fund Bridgewater Associates.
Dalio added that this leads to irreversible damages, with more importers and exporters, especially between the U.S. and China, significantly reducing mutual dependency and 'planning alternatives.'
"[They] realize that no matter how tariffs change, these issues will not disappear, and the significant reduction of mutual dependency with the U.S. is a reality that needs to be planned for."
Dalio believes that the role of the U.S. as the largest consumer of manufactured goods and the largest issuer of debt is becoming increasingly unsustainable, and the thought that trade partners will continue to sell goods to the U.S. and receive dollars is a 'naive thought.'
Therefore, more and more countries may soon surpass the U.S. by forming trade networks dependent on alternative currencies.
Although Dalio did not specify which alternative currency would weaken the dominance of the dollar, he suggested 'hard money' assets such as Bitcoin and gold in times of global instability.
The billionaire called for the U.S. to take calmer and more coordinated actions to address the trade imbalance issue and achieve greater self-sufficiency.
Dalio stated that facing the issue of U.S. government debt will yield better results than the "path" we are currently on. He said:
Dalio advises investors and policymakers to shift their focus away from daily market fluctuations and policy announcements, concentrating on 'major fundamental changes' in the world order.
China is affected by the tariffs of the Trump administration, with rates on all imports reaching up to 145%, while Canada and Mexico, America's neighbors, apply a 25% tariff on most goods.
Some countries that produce major Bitcoin mining machines, such as Thailand, Indonesia, and Malaysia, are facing tariffs of 36%, 32%, and 24%, respectively, which has impacted the import of machinery into the U.S.
Related suggestion: Gold-backed cryptocurrency is booming amid global trade instability.
