Hedge Fund Billionaire Ray Dalio Predicts US Recession
Renowned Hedge Fund Billionaire has stated he believes it is likely the US will experience “something worse than a recession”. The 75 year olds comments come in the wake of Donald Trump’s tariffs and ongoing trade war with China. Dalio is not just predicting a run of the mill recession but is concerned that geopolitical shifts are being made that cannot be undone. Changes which could affect America for generations to come.
Dalio’s Comments
Speaking to CNBC Dalio about recessions and the current economic climate he stated “A recession is two negative quarters of GDP and whether it goes slightly there. There are always have those things. In this situation we have something that’s much more profound. We have a breaking down of the monetary order. We are going to change the monetary order because we cannot spend the amounts of money.”
He continued to say “I’ve studied history and this repeats over and over again. So if you take tariffs, if you take debt, if you take the rising power challenging existing power, if you take those factors and look at the factors, those changes in the orders, the systems, are very, very disruptive. How that’s handled could produce something that is much worse than a recession. Or it could be handled well,”
It is clear the man who predicted the 2008 recession feels that the current political turmoil could have much greater consequences than even the financial crisis that broke the world’s economy.
When Dalio was asked if Trump’s tariffs were exacerbating an already unstable global situation. He did say that there was merit in improving the manufacturing climate in the United States. However he highlighted the importance of doing it in a measured and tactical way.
Sources
The Guardian – Hedge fund billionaire says US may face ‘worse than a recession’ from Trump tariffs
CNBC – Billionaire Ray Dalio: ‘I’m worried about something worse than a recession’
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