Former CEO of Bridgewater Associates, Ray Dalio, has expressed concern about the growing trade imbalance and the prospects of a collapse of the modern global monetary order. According to him, current trends are leading to the formation of alternative trade networks and increasing global economic instability.
This is reported by Business • Media
Causes and Consequences of Crisis Processes in the Global Economy
Dalio notes that many exporters and importers are already being forced to reduce their dealings in the American market due to the growing influence of tariff barriers.
“A radical reduction in interdependence with the U.S. is a reality we need to prepare for,” he emphasizes.
He states that regardless of the outcomes of negotiations between the U.S. and China, major players are already seeking alternative partners and planning to use new currency means for trade, which will lead to the fragmentation of the global economy. This, in turn, could result in currency weakening and increased geopolitical risks.
Calls for Calm and Coordinated Action
The expert stresses that the time of significant changes in the global financial system has already arrived. He urges the American authorities to take more cautious and coordinated steps to address trade imbalances and enhance the economic self-sufficiency of the country. He particularly advises focusing on resolving the issue of U.S. national debt.
Ray Dalio also notes that the imposition of tariffs on imported goods by President Donald Trump has caused high volatility in financial markets, including cryptocurrency and stock markets. Following the announcement of new tariffs and their potential escalation, trading activity and the value of crypto assets increased.
More details on the White House’s tariff policy and its impact on the cryptocurrency market can be found in special materials.