Ray Dalio, founder of Bridgewater Associates LP, speaks on Tuesday, December 10, 2024, at the ADFW conference of the Abu Dhabi Finance Week (ADFW) in Abu Dhabi, united Arab Emirates.
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Ray Dalio, founder of Bridgewater, said on Sunday that he was concerned that the turbulence due to the tariff and economic policy of President Donald Trump would threaten the global economy.
“At the moment we are at a decision point and very close to a recession,” said Dalio in NBC News' “Meet the press”. “And I'm worried about something worse than a recession if this is not treated well.”
The Hedge Found billionaire said that he was more concerned about trade disorders, the increasing US debt and the threshold world powers, which have reduced the international economic and geopolitical structure that has existed since the end of World War II.
“We go from multilateralism, which is largely a kind of thing in the American world, to a one -sided world order in which there are great conflicts,” he said.
Dalio said that five forces are promoting history: economy, internal political conflicts, international order, technology and nature actions such as floods and pandemics. Trump's tariffs have understandable goals, said Dalio, but they are implemented in a “very disruptive” way that creates global conflicts.
The rapidly changing tariff policy of the president has increased international trade. Trump announced a 90-day break for his “mutual tariffs” on Wednesday, but he was over 10% basic tasks and 145% against China.
The US customs and border protection then announced an exception to the mutual tariffs for under Chinese consumer electronics such as smartphones, computers and semiconductors, although the products are still exposed to a tariff of 20% that was imposed at the beginning of the year. The Minister of Commerce Howard Lutnick had returned on Sunday and said the exception was not permanent.
In a Wednesday post on X, Dalio asked the United States to negotiate a “Win-Win” mobile trade agreement with China that would appreciate the Yuan over the dollar. He also asked both countries to tackle their growing debts.
Dalio about “Meet the Press” said on Sunday that the congress should reduce the federal deficit to 3% of gross domestic product.
“If this is not the case, we also have a problem for debt for debts for these other problems, and the results will be worse than a normal recession,” said Dalio.
The value of the money is at stake, said Dalio. A breakdown of the bond market in combination with events such as internal and international conflict could be an even more serious shock for the monetary system as President Richard Nixon's cancellation of the gold standard in 1971 and the global financial crisis in 2008.
This change was avoidable, said Dalio, when the legislator works together to impair the deficit and the United States discourage conflicts and inefficient politics on the global phase.
Per: Take a look at CNBC's full interview with the Bridgewater founder Ray Dalio
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