Donald Trump is about to embark on his second term as President of the United States, and Ray Dalio, the founder of the world's largest hedge fund, Bridgewater Associates, predicts that his rise to power will bring significant changes to the global and American order.
Dalio believes Trump's second term will drive a transformation in the global order based on the former president's choices for key positions, including appointing Elon Musk and Vivek Ramaswamy as the leader of the newly established Department of Government Efficiency; Robert F. Kennedy Jr. as the Secretary of Health and Human Services to oversee a thorough reform of the healthcare system, and Republican Senator Marco Rubio, former Representative Tulsi Gabbard, and Fox News TV host Pete Hegseth as Secretary of State, Director of National Intelligence, and Secretary of Defense, respectively.
Dalio considers these key appointments to be indispensable for the Trump administration, and the Trump team's mission is to dismantle the so-called deep state and replace it with a new domestic order focused on strengthening economic power and combating foreign rivals.
Dalio writes, They are all win-at-all-cost loyalists to the leader and to the mission of bringing down the so-called 'deep state' and replacing it with a new domestic order that they hope will create maximum economic strength and fight foreign enemies.
In this regard, Dalio likens the strategy of the Trump team to corporate raiders, a pattern equivalent to launching a hostile takeover of an inefficient company, making substantial reforms by adjusting personnel, reducing costs, and integrating new technologies. Dalio believes that if this approach is applied to governance, it will have a profound impact on the United States and the global order.
He adds, It is now clear that Donald Trump and those he is choosing will reform government and the country like a corporate raider engaging in a hostile takeover of an inefficient company, making huge reforms to it by changing the people, slashing costs, and infusing it with new technologies,
Among them, the close partnership between Trump and Musk is expected to become the main catalyst for implementing this new domestic order. It is anticipated that Trump's policies will be favorable to Wall Street, technology companies, and businesses previously hindered by regulations and taxes.
Dalio also writes, We are now coming to the end of an era led by the United States, in which countries tried to work out together how to be with each other through multinational organizations with guiding principles and rules, and into a more self-interested, law-of-the-jungle-type order with the United States being one of the two biggest players and China the other— and the fight being largely the classic one of capitalism versus communism.