Ray Dalio Warns of Rising Authoritarianism Risks in the US

Billionaire hedge fund manager Ray Dalio, founder of Bridgewater Associates, has warned that the United States under Donald Trump is heading towards an authoritarian model similar to that of the 1930s. Dalio pointed out that factors such as wealth disparity, value divisions, and a loss of trust are pushing the country towards extreme policies.

In an interview with the Financial Times, Dalio explained that government intervention in the private sector, such as Trump's decision to acquire a 10% stake in chipmaker Intel, represents a type of strong autocratic leadership aimed at controlling financial and economic affairs. He added that few prominent financial figures dare to publicly criticize Trump for fear of retaliation.

Accumulating Debt Threatens the US Economy

Dalio emphasizes that years of massive deficits and unsustainable debt growth have pushed the US economy to the brink of a debt crisis. He points out that the recent budget approved by Trump will lead to serious spending excesses, which could lead to an imminent debt crisis and a "heart attack" for the economy. Dalio expects this crisis to occur within three years, with a margin of error of one to two years.

Impact of Inflation and Monetary Policy

Dalio believes that continued political pressure on the Federal Reserve to maintain low interest rates will weaken confidence in its ability to protect the value of the currency and reduce the attractiveness of dollar-denominated assets, which could undermine the current monetary system. He notes that international investors have already begun to shift from US Treasury bonds to gold.

Dalio concludes his warnings by emphasizing that the United States is at a crossroads. It must address the issues of accumulating debt, wealth disparity, and value divisions before the situation worsens and the country slides toward an unstable future.


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