Source: Global Market Express
Ray Dalio, billionaire founder of one of the world's largest hedge funds, said on Sunday that the trade war initiated by US President Trump has brought the United States close to a recession.
In the program "Facing the Media," he was asked whether he believed that the largest economy in the world, the United States, would fall into a recession due to the trade war that has disrupted global markets in recent weeks (a recession is generally understood as a significant decline in output).
The founder of Bridgewater Associates said, "I think we are at a critical decision point and are very close to a recession."
Trump's tariff plan involves imposing tariffs on dozens of countries, but last week the planned start dates for many tariffs suddenly changed, with tariffs suspended for 90 days on goods from many places.
Dalio described this situation as "highly destructive," and said that the impact of tariffs is "like throwing stones into the production system."
He also expressed concern about the potential combined impact of U.S. debt, the U.S. budget deficit, and global political tensions.
"We are in the midst of a profound transformation of the world order... Considering tariffs, considering the debt issue, and considering the challenge posed by emerging powers to existing major powers... how these issues are handled could lead to consequences worse than a recession."
He mentioned market crises in 1971 and 2008 and stated that if these other problems occur simultaneously, "the current situation may be more severe than those two crises."
About 50 years ago, Dalio founded Bridgewater Associates in Connecticut. The fund has 175 investors, including pension funds, foundations, and central banks of various countries.
Original article: https://www.toutiao.com/article/7492866632793047561/
Disclaimer: This article represents the author's personal views. Please express your attitude by clicking the "Like/Dislike" buttons below.