Ray Dalio sounds the alarm for the future of the global economy
The renowned investor Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, has just raised a concerning alarm about the future of the global economy. In a recent interview with NBC, Dalio expressed his apprehension regarding U.S. tariff policy.
Furthermore, he also warned that the world may be heading toward something even more severe than a simple recession.
Dalio cites the unsettling parallel of the 1930s, which preceded the Great Depression of 1929. "I have studied history and it repeats itself many times," Dalio commented, underscoring the seriousness of his predictions.
Global economy on the brink of the abyss?
Dalio, author of the book "Principles for Navigating a Changing World Order: Why Nations Succeed and Fail," believes that the world economy is driven by a set of five interconnected major forces.
He lists short-term cyclical debt, long-term debt, the internal order of each nation, the global/external order, and technology as the main drivers of economic history.
Regarding the first points, Dalio expressed his concern about the increasing debt of the U.S. government and the deep internal political division in the United States.
However, the third point emerges as one of the most critical factors in his analysis. Currently, the decline of the U.S. as a hegemonic power in the global economy and the emerging conflict with China.
When asked about the tariffs imposed by the U.S. government, Dalio noted that there is a desire to bring companies back to the U.S. to create jobs. In addition to increasing tax revenue, which could have both positive and negative effects. "I think it depends on how these things are handled," Dalio pondered.
Source: criptonizando
