icon
icon
icon
icon
🏷️$300 Off
🏷️$300 Off

News /

Articles /

Ray Dalio Warns Global Monetary Order Faces Collapse Due to US-China Trade Tensions

Coin WorldMonday, Apr 28, 2025 11:22 pm ET
1min read

Legendary investor Ray Dalio has warned that the global monetary order is on the brink of collapse, a situation exacerbated by the tariff disruptions initiated by the Trump administration. Dalio, the former CEO of hedge fund Bridgewater Associates, highlighted that these trade tensions are causing significant fractures in the monetary, political, and international world orders. This is leading to deglobalization and unsustainable trade imbalances, particularly between the US and China.

Dalio emphasized that the current trade environment is causing irreversible damage, with importers and exporters, especially between the US and China, drastically reducing their interdependencies and making alternative plans. He noted that the recognition of these issues is leading to a reality where reduced interdependencies with the US must be planned for, regardless of the outcome of tariff negotiations.

Dalio also pointed out that America’s role as the world’s largest consumer of manufactured goods and the largest debt issuer is becoming increasingly unsustainable. The idea that trade partners would continue selling to the US and receive dollars in return is, according to Dalio, a naive assumption. This could lead to more countries bypassing the US by forming new trade networks that rely on alternative currencies.

While Dalio did not specify which monetary alternative would challenge the dollar’s dominance, he has previously advocated for "hard money" assets like Bitcoin and gold during times of global uncertainty. He called for more calm and coordinated action from the US to address trade imbalances and become more self-sufficient. Dealing with the US government debt problem head-on would yield better results than the current path, which Dalio described as marked by fighting and volatility leading to irreversible bad consequences.

Dalio advised investors and policymakers to shift their focus from day-to-day market moves and policy announcements to address these fundamental changes in the world order. He suggested that the current environment is teaching lessons that are leading to irreversible negative consequences, and a more strategic approach is needed to navigate these challenges.

Comments

Add a public comment...
Post
User avatar and name identifying the post author
themousethatroar_ed
04/29
OMG!Those $BTC whale-sized options block were screaming danger! � Closed positions just in time profiting more than $100
0
Reply
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App