Bridgewater Associates founder Ray Dalio: The global monetary order is "on the brink of collapse"

Source: Cointelegraph Original: "Ray Dalio, founder of Bridgewater Associates: The global monetary order is 'on the brink of collapse'"

Legendary investor Ray Dalio stated that the global monetary order is "on the brink of collapse," and this process is being accelerated by the tariff disruptions caused by the Trump administration.

In a post on the X platform on April 28, Dalio pointed out that trade tensions are undermining currency, politics, and international order, fueling de-globalization and unsustainable trade imbalances. He previously served as the CEO of the hedge fund Bridgewater Associates.

Dalio added that this has led to irreversible damage, with more and more importers and exporters, especially those between the United States and China, significantly reducing mutual dependence and "developing alternative plans."

"[They] realize that regardless of how tariffs change, these issues will not disappear, and significantly reducing mutual dependence with the United States is a reality that must be planned for."

Dalio stated that the role of the United States as the world's largest consumer of manufactured goods and the largest issuer of debt is becoming increasingly unsustainable, and he believes that the idea that trade partners will continue to sell goods to the U.S. and receive dollars in return is "naive thinking."

As a result, more and more countries may bypass the United States by forming new trade networks that rely on alternative currencies.

Although Dalio did not specify which currency alternatives would undermine the dollar's dominance, he advocates for "hard currency" assets such as Bitcoin and gold during times of global uncertainty.

This billionaire calls for the United States to take a more calm and coordinated action to address the issue of trade imbalances and achieve greater self-sufficiency.

Dalio stated that facing the U.S. government's debt issue will yield better results than the "path" we are currently on. He said:

Dalio suggests that investors and policymakers shift their attention from daily market fluctuations and policy announcements to these "significant fundamental changes" in the world order.

China is affected by the tariffs of the Trump administration, with tariffs on all imported goods reaching as high as 145%, while its neighboring countries Canada and Mexico impose a 25% tariff on most goods.

Some major Bitcoin mining machine manufacturing countries, such as Thailand, Indonesia, and Malaysia, face tariffs of 36%, 32%, and 24% respectively, which has already affected the import of machines to the United States.

Related articles: Gold-backed cryptocurrencies surge amid global trade uncertainty.