Ray Dalio, founder of Bridgewater Associates LP, speaks at the Abu Dhabi Finance Week (ADFW) conference in Abu Dhabi, the United Arab Emirates, Tuesday, December 10, 2024.
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Bridgewater’s founder Ray Dalio said on Sunday that he feared that the turmoil resulting from President Donald Trump’s tariff and the world economy.
“Right now, we are at a decision point and very close to a recession,” said Dalio on “Meet The Press” of NBC News. “And I worry for something worse than a recession if it is not well managed.”
The billionaire of hedge funds said he was more concerned with commercial disturbances, the assembly of the American debt and emerging world powers lowering the international economic and geopolitical structure which has been in place since the end of the Second World War.
“We are moving from multilateralism, which is largely a type of American world order, to a unilateral world order in which there is a great conflict,” he said.
Dalio said five forces stimulate history: economics, internal political conflicts, international order, technology and nature acts such as floods and pandemics. Trump’s prices have understandable objectives, said Dalio, but they are implemented in a “very disturbing” way that creates a world conflict.
The president’s rapidly evolving pricing policies have changed international trade. Trump on Wednesday announced a 90 -day break on his “reciprocal prices”, but he kept firm at 10% reference functions and 145% prices on China.
Then, customs and the protection of American borders announced an exemption from the prices for the consumer electronics of Chinese manufacturing such as smartphones, computers and semiconductors on Friday, although the products remain subject to a tariff of 20% imposed earlier in the year. But the commercial secretary, Howard Lungick, went back on Sunday and said that the exemption was not permanent.
In a Wednesday job On X, Dalio called on the United States to negotiate a “win-win” trade agreement with China which would appreciate the Yuan against the dollar. He also called on the two countries to respond to their growing debts.
Dalio on “Meet The Press” said on Sunday that Congress should reduce the federal deficit to 3% of the gross domestic product, echoing the comments he made at the CNBC live event in March.
“If they don’t, we are going to have a supply problem for debt at the same time as we have these other problems, and the results will be worse than a normal recession,” said Dalio.
The very value of money is at stake, said Dalio. A breach of the bond market, combined with events such as internal and international conflicts, could be an even more serious shock for the monetary system than the cancellation by President Richard Nixon of the Order Stonal in 1971 and the global financial crisis in 2008.
This change is avoidable, said Dalio, if the legislators work together to reduce the deficit and the United States discourages the conflict and the ineffective policy on the world scene.
