{"id":70536,"date":"2025-10-12T21:24:14","date_gmt":"2025-10-12T21:24:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/70536\/"},"modified":"2025-10-12T21:24:14","modified_gmt":"2025-10-12T21:24:14","slug":"bridgewater-founder-ray-dalio-warns-u-s-is-headed-for-civil-war","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/70536\/","title":{"rendered":"Bridgewater founder Ray Dalio warns U.S. is headed for civil war"},"content":{"rendered":"

Bridgewater Associates founder Ray Dalio is always on the lookout for the next issue that could derail the economy. He, like many others, is extremely concerned about national debt. He\u2019s also mindful of geopolitical conflict, restructuring of the monetary world order, and also the rising tensions within America itself.<\/p>\n

Should friction in the U.S. continue, the hedge fund founder warned individuals\u2019 ability to \u201churt each other\u201d has never been higher.<\/p>\n

He explained: \u201cWe\u2019re in wars. There is a financial, money war. There\u2019s a technology war, there\u2019s geopolitical wars, and there are more military wars. And so we have a civil war of some sort which is developing in the U.S. and elsewhere, where there are irreconcilable differences.\u201d<\/p>\n

Speaking to Bloomberg<\/a>, Dalio said there are two outcomes for America: Either the nation pulls together and rises above, or conflicting sides exert as much pain on the other as they can.<\/p>\n

Society may \u201crise above it and realize that our common good is going to necessitate us dealing with it so that what works for most people is going to work,\u201d he noted. Unfortunately, this belief may prove \u201ca little bit idealistic.\u201d<\/p>\n

\u201cI have to be a practical person,\u201d he continued. \u201cI think that these conflicts will become tests of power by each side.\u201d<\/p>\n

America is more divided than in the past. Last year, a Gallup survey<\/a> found 80% of Americans believed their country was \u201cgreatly divided\u201d on key issues, with Republicans slightly more inclined than Democrats to say the country was united. <\/p>\n

Indeed, many investors will be familiar with Dalio\u2019s warnings\u2014the billionaire has long said that geopolitical tensions could spill into another global conflict. Back in 2023<\/a>, Dalio warned the likelihood of a third world war had increased to 50% following Russia\u2019s invasion of Ukraine, and the Israel-Hamas conflict.<\/p>\n

While naysayers may argue Dalio is the boy who cried wolf, his caution has paid off in the past. In 2007, Bridgewater began to warn of large risks embedded \u201cin the system\u201d\u2014by 2008, a financial crisis had hit.<\/p>\n

Moreover, while Dalio\u2019s warning sounds alarming, it is also somewhat inevitable: \u201cIn history we have to recognize that all orders have come to an end, and then there\u2019s a new order, and there\u2019s a challenge. I have a principle, if you worry, you don\u2019t have to worry. And if you don\u2019t worry, you need to worry\u2014if you worry then you will take care of what you\u2019re worrying about and [prevent it] from happening.\u201d<\/p>\n

National debt fears<\/p>\n

One of Dalio\u2019s top fears\u2014and indeed one of the factors he cites for a potential global war\u2014is national debt. Like many of his peers (Jamie Dimon and Jerome Powell, to name a few), Dalio is worried that one day America\u2019s need to sell debt will outweigh the market\u2019s appetite to buy it.<\/p>\n

This will likely be prompted by America\u2019s debt-to-GDP ratio becoming even more imbalanced\u2014currently it stands at around 125%\u2014at which point debt buyers will demand higher premiums to ensure returns, or will exit the market entirely. Either option leaves the U.S. in a tough spot, with higher interest to pay out or significant cutbacks to be made.<\/p>\n

This imbalance, what Dalio calls the \u201cdebt bomb,\u201d is an economic heart attack waiting to happen, he argues: \u201cWhen debt and debt service rise relative to your income it\u2019s like plaque in the arteries that then begins to squeeze out the spending.\u201d<\/p>\n

The Bridgewater founder added this tension isn\u2019t anything new, saying these issues cycle repeatedly through time. What\u2019s needed to mitigate its impact is understanding the \u201ccause and effect\u201d dynamic.<\/p>\n

\u201cWhenever things are coming along that I had not seen before, I really needed to understand if they happened in history so I can understand the mechanics, which is why I study history,\u201d he added.<\/p>\n

Fortune Global Forum returns Oct. 26\u201327, 2025 in Riyadh. CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of business. Apply for an invitation.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Bridgewater Associates founder Ray Dalio is always on the lookout for the next issue that could derail the…\n","protected":false},"author":2,"featured_media":70537,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,1575,39267,184,24702,85,46,238,12220],"class_list":{"0":"post-70536","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-debt","10":"tag-debt-crisis","11":"tag-economy","12":"tag-geopolitics","13":"tag-il","14":"tag-israel","15":"tag-politics","16":"tag-ray-dalio"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/70536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=70536"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/70536\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/70537"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=70536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=70536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=70536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}