Ray Dalio Warns: Global Monetary Order 'On the Brink' Amid Trump's Trade Policies

April 29, 2025
Ray Dalio Warns: Global Monetary Order 'On the Brink' Amid Trump's Trade Policies
  • He cautioned that countries may increasingly bypass the U.S. and adapt to trade separations, forming new economic connections and alliances.

  • He criticized the U.S.'s position as the largest consumer of manufactured goods and issuer of debt, labeling the expectation of receiving dollars in exchange for exports as 'naive thinking'.

  • The co-chief investors at Bridgewater Associates have echoed Dalio's concerns, warning of a new macroeconomic and geopolitical paradigm reshaping the global economic landscape.

  • Dalio urges investors and policymakers to focus on preparing for significant fundamental changes rather than merely reacting to daily market fluctuations.

  • As a result, more importers and exporters are reducing their interdependencies with the U.S., signaling a shift towards a future less reliant on American markets.

  • Dalio expressed concern that the existing monetary, political, and international orders are at risk of breaking down due to unsustainable economic fundamentals.

  • Other prominent billionaires, including Jamie Dimon and Bill Ackman, have also voiced concerns about the detrimental effects of Trump's trade policies on the American economy.

  • Billionaire investor Ray Dalio has issued a stark warning that the global monetary order is 'on the brink' of breakdown, largely due to trade tensions exacerbated by President Donald Trump's tariffs.

  • Dalio emphasized that it is 'already too late' for the effects of these tariffs, announced in early April 2025, to stabilize, prompting many exporters to rethink their reliance on U.S. markets.

  • Recent market trends, including a sell-off of the dollar and U.S. Treasuries, reflect growing investor concerns regarding the stability of the U.S. economy under Trump's aggressive trade policies.

  • Dalio argues that the tariffs are destabilizing rather than strategic, contributing to deglobalization and unsustainable trade imbalances, particularly in U.S.-China relations.

  • In light of the uncertain global economic climate, he advocates for 'hard money' assets like Bitcoin and gold as safer investment options.

Summary based on 4 sources


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