Billionaire investor Ray Dalio, founder of Bridgewater Associates, expressed deep concerns about the future of the global economy, suggesting that the current economic turmoil, exacerbated by U.S. trade policies, could lead to a more severe crisis than the 2008 financial meltdown.
Speaking on NBC News’ “Meet the Press” on Sunday, Dalio stated that while the world is approaching a potential recession, there is an even greater threat looming. He pointed out that the combination of escalating U.S. debt, the breakdown of international trade structures, and geopolitical tensions could ultimately destabilize the global monetary system.
Dalio highlighted the shift from multilateralism—a system that has been in place since the end of World War II—to a more unilateral world order, driven by conflict and competition between global powers. According to Dalio, the disruptive trade policies enacted by former President Donald Trump, including tariffs and changing economic strategies, are contributing to a growing sense of international conflict and economic instability. 
While acknowledging the potential aims behind Trump’s tariff policies, Dalio argued that they were being carried out in a way that caused significant disruptions to global trade. The uncertainty created by these changes has contributed to increasing tensions between the U.S. and major trading partners like China.
Dalio warned that these trade disruptions, combined with mounting national debt, could trigger a severe financial shock. The risk, according to Dalio, lies in a breakdown of the bond market and its impact on the broader monetary system—something he believes could surpass even the disruption caused by Nixon’s decision to end the gold standard in 1971 or the 2008 financial crisis.
Dalio also emphasized the urgency of addressing the U.S. federal deficit. He called for Congress to reduce the deficit to 3% of the nation’s gross domestic product (GDP) to prevent a debt supply-demand imbalance. Failing to do so, Dalio warned, could exacerbate the current economic challenges and lead to a crisis worse than a typical recession.
In a recent post on X (formerly Twitter), Dalio urged the U.S. and China to work toward a mutually beneficial trade agreement, suggesting that such a deal could help stabilize the yuan and address the mounting debts facing both countries.
Dalio concluded that while the current economic situation is dire, it is still possible to avoid a global collapse if lawmakers collaborate to reduce the deficit and pursue more efficient, less confrontational global policies.
