Hedge fund billionaire Ray Dalio warns tariffs on “with news” could bring “worse than recession”
Billionaire hedge fund manager Ray Dalio is not only worried about the U.S. recession.
“This” is Trump’s international tariffs.
“The recession is two negative seasons of GDP, is there a little bit of going there. We always have these things. We have something deeper,” the investor and Bridgewater founder explained. “We have a breakdown of currency orders. We will change the currency order because we can’t spend the amount of money. So we have this problem. When we talk about the dollar and we talk about tariffs, we have it.”
He added that the situation the United States has faced is precedent. “The era like this is very much like the 1930s. I’ve learned history. This will repeat over and over again. So if you take tariffs, if you take debts, if you take rising forces to challenge existing forces, if you take these factors and look at these factors and look at these factors, these orders, systems, systems, very, very, very, very, very, very, very, very, very, very disruptive things can produce very, very good things. This can cause worse things.
After Welk asked Dalio to clarify (and point out that the 2008 recession was correctly predicted), he added that the United States was “at the juncture.”
“Let’s take the budget. If the budget deficit can be reduced to 3% of GDP, then if there is no change, it will be about 7%. “If it can be reduced to about 3% of GDP and these trade deficits etc can be managed in the right way, then this can all be managed well. I believe that members of Congress should take the assurance, I call the 3% guarantee. In one way or another, they will encounter debt, and if they don’t, then we will have any problems than normal recession.”
Welk continued to push Dalio and asked him to name his “greatest fear” in terms of the financial crisis. “The value of money, what is wealth’s store wealth? That’s a kind of bond. In other words, one’s debt is the asset of another, the bondholder. So if that kind of wealth “shop holding” is in danger because there is too much supply and demand, and we have monetary inflation,” he explained. “We will suffer a lot of damage. It could be like the collapse of the monetary system of ’71. It might be like 2008. It will be very serious.”
