In a recent interview on NBC’s “Meet the Press,” billionaire investor Ray Dalio warned that President Donald Trump’s tariffs could lead to severe economic consequences, potentially worse than a recession.
Dalio, who founded the world’s largest hedge fund, expressed his concerns regarding the chaotic implementation of these tariffs.
Dalio noted that the current tariff situation is proving to be “very disruptive,” impacting the efficiency of global production.
When asked by host Kristen Welker whether these tariffs could trigger a recession, he responded that the U.S. is at a critical decision-making point and “very close” to experiencing a recession.
His worries extend beyond an economic downturn, highlighting the potential for something even more detrimental if the situation isn’t managed properly.
He elaborated on how changes in monetary order and rising debt levels are contributing to broader disruptions in both the domestic and international landscape.
Dalio drew parallels to the geopolitical and economic circumstances of the 1930s, indicating that the current trends could lead to significant upheaval.
He pointed out that the implications of tariffs, national debt, and shifts in global power dynamics may result in profound long-term changes.
Dalio cautioned that should these issues continue unaddressed, the “value of money” could be jeopardized, precipitating a crisis akin to the monetary system breakdown of 1971 or the financial crisis of 2008.
He further emphasized the risk of internal conflict and international turmoil as potential outcomes of the current economic trajectory.
Ultimately, Dalio’s forecast underscores the urgency of addressing these tariff-related challenges, as failure to do so could lead to severe and widespread economic fallout, reminiscent of past financial crises.
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