DID Press: Ray Dalio, a prominent global economic analyst, has warned that both the global order and the international monetary system are collapsing, with geopolitical tensions escalating rapidly.
In the financial sector, Dalio considers the seizure of Russian assets as a pivotal moment, which has led many central banks to replace U.S. Treasury bonds with gold. According to Dalio, this shift has resulted in gold outperforming stocks, while bonds have lost their traditional safe-haven status.
Geopolitically, Dalio attributes the “America First” trade policies and the “dominance-at-any-cost” approach of the U.S. as the key factors driving many countries away from Washington. He stressed that the U.S. is pressuring nations that have financially supported it through the purchase of U.S. Treasury bonds, a relationship he believes is unsustainable and fragile.
Dalio compares the current situation to historical periods when a declining empire faced a rising rival, conditions that have historically led to major wars. He draws parallels to the early 20th century, when the decline of Britain and the rise of Germany eventually led to World War I.