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Billionaire American investor Ray Dalio has expressed concern that it is “too late” to tackle the economic consequences of US President Donald Trump’s tariffs. He also noted that the global economic system, traditionally centered around the US, is beginning to unravel.
In a social media post, Dalio stated, “According to several of my indicators, it seems we are on the verge of a breakdown in the monetary system, domestic politics, and international world order due to unstable and poor fundamentals.”
Dalio, the founder of Bridgewater Associates—the world’s largest hedge fund by assets—gained fame on Wall Street for predicting the financial crisis of 2008.
According to Dalio, whose warning came with a promotion of his new book, investors would be “naive” to assume that they can keep lending to the US and get paid back in “hard” dollars, meaning currency that isn’t devalued.
“There is a growing risk that the United States…will increasingly be bypassed by a world of countries that will adapt to these separations from the United States and create new synapses that grow around it,” he wrote.
Dalio isn’t the only billionaire to sound the alarm over Trump’s policies.
Jamie Dimon, CEO of JPMorgan Chase; Stanley Druckenmiller, founder of the Duquesne Family Office; hedge fund investor Bill Ackman and others have all publicly fretted that the trade war the president set off could hurt the American economy.