Ray Dalio warns global monetary order is on brink of breakdown
Billionaire investor Ray Dalio has warned that the global monetary order is “on the brink” of collapse, accelerated by trade disruptions caused by the Trump administration’s tariffs.
Dalio, founder of Bridgewater Associates, said in an April 28 social media post that tariff-induced trade tensions are fracturing monetary, political, and international world orders by fueling deglobalisation and unsustainable trade imbalances.
He noted that importers and exporters, especially between the US and China, are drastically reducing interdependencies and “making alternative plans,” recognising that tariff problems will persist regardless of future policy changes.
Dalio described America’s role as the world’s largest consumer of manufactured goods and largest debt issuer as increasingly unsustainable, calling the expectation that trade partners will continue selling to the US and accepting dollars “naive thinking.”
As a result, he said, more countries may bypass the US by forming new trade networks relying on alternative currencies.
While Dalio did not specify which currencies might challenge the dollar’s dominance, he has previously endorsed “hard money” assets like Bitcoin (CRYPTO:BTC) and gold during times of global uncertainty.
He called for calm and coordinated US policy actions to address trade imbalances and reduce government debt, warning that current volatility and conflict risk causing irreversible damage.
Dalio urged investors and policymakers to focus beyond daily market fluctuations and consider the fundamental shifts reshaping the global order.
The tariffs have hit China hardest, with a 145% duty on imports, and also affected US neighbors Canada and Mexico with 25% tariffs, as well as key Bitcoin mining equipment suppliers like Thailand, Indonesia, and Malaysia.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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