Ray Dalio, who predicted the 2008 financial crisis, warns the U.S. faces something “worse than a recession” under President Trump’s economic policies.
The Bridgewater Associates founder sees three major threats: chaotic tariffs (including 50% on Chinese and EU steel/aluminum), soaring debt levels, and rising tensions between global superpowers. He compares today’s conditions to the 1930s, warning they could trigger a collapse of the post-WWII monetary system.
Dalio says Trump’s unpredictable tariffs are “throwing rocks into the production system,” disrupting markets and crushing consumer confidence. His solution: Congress must cut the budget deficit to 3% of GDP and stabilize trade policies—or face a debt crisis that would dwarf a normal recession.