Billionaire Ray Dalio warns something worse than a recession could happen soon; here's what could happen if Donald Trump doesn't correct his policies

Billionaire investor and founder of Bridgewater Associate, Ray Dalio, has concerns about the direction of the global economy and predicted that US president Donald Trump's economic and tariff policies have the potential to cause an economic meltdown far worse than a recession, as per a report.

Ray Dalio Sounds the Alarm on Global Economy

During NBC News’ 'Meet the Press', he said, “Right now we are at a decision-making point and very close to a recession and I’m worried about something worse than a recession if this isn’t handled well,” quoted CNBC.

Dalio is concerned about key economic issues, including mounting trade tensions, increasing US debt, and the changing global balance of power, as per CNBC.


The hedge fund manager said, “We are going from multilateralism, which is largely an American world order type of thing, to a unilateral world order in which there’s great conflict,” as quoted in the report.

The Five Forces Shaping Our Future

He explained that five forces drive history, the economy, internal political conflict, the international order, technology and acts of nature such as floods and pandemics, according to CNBC. He also claimed that Trump’s tariffs have understandable goals, but they are being implemented in a “very disruptive” way that creates global conflict, reported CNBC.

Dalio also said that the Trump administration should cut the federal deficit to 3% of gross domestic product, adding that, “If they don’t, we’re going to have a supply-demand problem for debt at the same time as we have these other problems, and the results of that will be worse than a normal recession,” quoted CNBC.

FAQs

What did Dalio say about the economy?
He warned that the US could face an economic crisis worse than a recession if Trump’s policies aren’t corrected, as per CNBC.

What five forces did he say drive history?
The economy, internal political conflict, global order, technology, and acts of nature.