The billionaire warns against Trump's customs: I'm afraid of something worse than a recession
Ray Dalio's comments appeared after a turbulent week on global stock markets, caused by Trump's tariff policy, especially after increasing China duties to 145 percent.
The billionaire who predicted the recession in 2008 believes that the United States is “at the crossroads”. He emphasized the importance of reducing budget deficits and proper management of trade deficits.
“I studied history and this is still repeating. So, if we consider customs, debt, growing strength that causes existing strength, if we look at the factors – these changes in orders, in systems – they are very, very destructive. The way of managing them can bring something much worse than recession,” he warned.
The threat of collapse of the monetary market
Ray Dalio also called on the members of the Congress to make a commitment, which he called “the three percent promise”, referring to reducing the budget deficit to three percent. GDP. Otherwise, he warned There will be a problem with supply and debt demand, which “will be worse than a normal recession.” The value of money and the coincidence collapse is at the stakesaid the American investor.
He pointed out that the collapse of the bond market, combined with events such as internal and international conflicts, could be even a greater shock for the monetary system than the cancellation of the gold standard by President Richard Nixon in 1971 and the global financial crisis of 2008.
When asked about the impact of Trump's customs tariffs, Ray Dalio recognized the need to develop production and increase the number of jobs in the USA. However, he emphasized the importance of the way it is done, calling for “high quality negotiations”, not a “chaotic and destructive” approach.
Financial experts warn that “the damage has already been caused”, especially in terms of what many call “quick denomination”, despite the fact that Donald Trump temporarily frozen duties at 10 percent. for 90 days for most imports from the USA.
