Ray Dalio, founder of Bridgewater Associates and an influential voice among investors, has delivered a sobering message where he states that United States citizens are not just dealing with trade skirmishes but watching the slow-motion collapse of the global system as we know it.
What Happened: In a detailed public post, Dalio criticized the media and market obsession with President Trump’s tariffs, arguing that they are merely “a symptom, not the cause” of the turmoil. “Don’t make the mistake of thinking that what’s now happening is mostly about tariffs,” he warned.
Don’t Miss: ‘Scrolling To UBI’ — Deloitte’s #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.
Dalio outlines what he sees as five converging crises:
Monetary and Economic Breakdown: U.S. debt now exceeds $36 trillion and continues to balloon. Dalio calls the U.S.-China economic relationship an “incongruous” debtor-creditor addiction cycle, driven by deglobalization and dangerously unsustainable borrowing.
Domestic Political Unraveling: He sees a deepening rift between the far left and far right. “Compromise is now viewed as weakness,” he noted, echoing data from Pew Research that shows 85% of Americans believe political conflict is worsening.
Geopolitical Realignment: The old U.S.-led world order is breaking apart. Trump’s “America First” strategy, from tariffs to tech bans, signals a shift to a “power-rules approach.” Dalio connects this to historical cycles in which emerging powers challenge incumbents — China, in this case, whose GDP (PPP) overtook the U.S. in 2024, per IMF data.
Climate Instability: Floods, droughts, and pandemics are no longer one-off events—they’re systemic shocks that further erode fragile political and financial systems.
Technological Disruption: AI is accelerating everything — from geopolitical arms races to labor market dislocation. “This is not business as usual,” Dalio warned.
See Also: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
Why It Matters: Dalio suggests that policymakers stop reacting to headlines and start studying the past. “What’s happening now resembles the debt-default cycles of the 1930s and the stagflation chaos of the 1970s,” he wrote.