Hedge-fund billionaire Ray Dalio, who predicted the 2008 financial crisis, is warning that President Donald Trump’s extensive tariffs combined with other factors could drive the economy to the brink.
“I think that right now we are at a decision-making point and very close to a recession,” he said on “Meet The Press” on Sunday. “And I’m worried about something worse than a recession if this isn’t handled well.”
He said the problems today are potentially “much more profound” than what’s seen in a typical recession, which is two negative quarters of GDP growth.
“We have a breaking down of the monetary order,” he said, along with “profound changes” in both domestic and world order.
“Such times are very much like the 1930s,” he said, referring to the period that covered most of the Great Depression. “I’ve studied history and this repeats over and over again.”
Dalio also warned of the potential for a “supply-demand problem for debt” at the same time as tariff-related economic issues.
“And the results of that will be worse than a normal recession,” he said.
Pressed if that means a depression, Dalio didn’t use the word ― but did say that what happens next could be “very severe.”
Dalio ― founder of Bridgewater Associates, which is the world’s largest hedge fund ― said there’s still a chance to avoid it all.
“This could all be managed very well,” especially if Congress takes action to reduce the budget deficit, he said.
See his full “Meet The Press” discussion below:
