The billionaire Ray Dalio warns the definitions that may cause a collapse in the financial system

Director of the Hittage Fund billionaire Ray Galio He warned in an interview on Sunday that he is concerned about the economy that suffers from something “worse than stagnation” if the trade war provokes the collapse of the wider financial system.

Dalio, co -official in the world’s largest hedge fund, said in his appearance on NBC’s.Meet the press with Christine Wilker“President Donald Trump’s tariff was” very annoying “and” like throwing rocks in the production system. “

Wilker Dalio asked if Trump’s tariff is likely to stagnate, and he replied: “I think we are now at the decision -making point and very close to the recession. I am concerned about something worse than stagnation if this is not treated well.”

Dalio said that although the recession occurred regularly, what appears to be “deeper” as there is “the crash of the monetary system” that includes the dollar, along with the collapse of the local system and the global order.

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“Such times are very similar to the thirties of the twentieth century,” Dalio said.

“I studied history, and this is repeated again and again. So if you take a customs tariff, if you take debts, if you take the increasing strength that challenges the current power, if you take these factors, those changes in orders, and systems are very exposed.”

He continued and asked him about his prediction of the country’s direction, after Dalio was correctly predicted by the 2008 financial crisis. Dalio indicated that the US federal government is in a critical turn with it. BudgetWhich was expected to rise to 7 % of GDP (gross domestic product) if tax and spending policies were not repaired.

The director of the hedge fund, billionaire, warns of an “economic heart attack” for the American economy

“If it can be reduced to about 3 % of GDP, this trade deficit, etc. is managed in the right way, can be managed very well,” adding that it is a fan Members of Congress To reduce the deficit to 3 % of GDP.

Dalio identified ways for policy makers to achieve stability in debt at this level and called on Congress to take this issue in a way of two parties as in the 1990s, when the federal government was the last surplus.

He added that if the United States does not settle on the deficit, this is likely to cause interest rates National debt To improve and exacerbate the country’s financial and economic challenges.

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“If they do not do that, he will face a problem with the debt/demand for debt at the same time that we face these other problems. The results of this will be worse than the natural recession,” Dalio said.

Welker Dalio asked about the follow -up question of what he considers the scenario of the worst cases of the economic system.

“To be very specific, the value of money, and the internal conflict that is not normal democracy as we know it, and International conflict Dalio said: “Somehow is largely destroying the global economy and could be a military conflict just as these collapses have occurred before,” Dalio said.

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