Billionaire investor Ray Dalio warns of decline of US empire, dollar and capital war with China
Billionaire investor Ray Dalio, whose hedge fund laid off several dozen employees this month, said he was worried about “the strength of our money” and warned of a US-China “capital war” that would hurt the dollar.
The founder of Bridgewater Associates – the largest hedge fund company in the world, according to Forbes – Dalio has a net value of $ 18.6 billion. He was the third highest paid hedge fund manager in 2019 and gave $ 768.9 million to philanthropic causes over his lifetime.
Bridgewater manages $ 160 billion in funds.
Dalio expected in november that capital wars would mark the next stage in the economic conflict between the United States and China, arguing that the struggle for power may soon evolve into a struggle for the dollar’s long-standing place as the preferred form of exchange of the world, CNBC reported.
Speaking Sunday on Fox’s “Sunday Morning Futures“Dalio said he considered that the stability of the dollar was threatened by the United States’ own policies and that the conflict with China could turn into a capital war. He presented a scenario for the next conflict between the United States. two countries and warned that ideological divisions and lax fiscal policy are pushing the United States into decline.
What is a capital war?
In his book, “Capital wars(Bloomsbury 2014) Author Daniel Pinto provides insight into how the East is winning the war for economic supremacy, shaping the new world order, and leaving the United States and Europe with no choice but to reinvent itself.
The dollar fell to its lowest level in almost two years. The United States is endangering the stability of the dollar by being “our worst enemy”, said Dalio, adding that he was concerned about the “strength of our money”.
The ICE US Dollar Index, which measures the dollar against a basket of six rivals, hit a 22-month low on Friday and fell again on Monday. On March 22, the index hit an intraday high of more than three years.
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“There is a trade war, there is a technology war, there is a geopolitical war and there could be a capital war,” Dalio said.
“If you say by law, ‘Do not invest in China’, or even if you possibly withhold payment of the obligations that the United States has to pay in China, these are possibilities and they have great implications, as for the dollar, because pre-market investors are not used to these things being dictated by the government, ”said Dalio.
“You can’t keep running deficits, selling debt, or printing money rather than being productive and sustaining that over a period of time,” Dalio said.
“If we don’t work together to do things healthy, to be productive, to earn more than what we spend, to build the stability of our currency and build a good balance sheet, we will decline,” he added. .