New Delhi, Sep 24 Famous investor and the founder of the world’s largest hedge fund, Bridgewater Associates, Ray Dalio has expressed concerns that the United States and the United Kingdom could be heading into "very, very dark times” in terms of their financial and geopolitical situations.
On the "Diary of a CEO" podcast, Dalio said that a repeating 80-year cycle indicates that the world is entering a period of major conflict and turmoil, both globally and within countries.
"The UK government has a debt problem. The country has been in decline since the war," said Dalio, adding that the financial stress is connected to intense internal conflict.
While the US has a culture of entrepreneurship and innovation, it, too, has a significant debt problem, said the famous investor. "The US is very much a big picture. It definitely has the debt-money economy issue and internal conflict problem. Democracy is at risk," Dalio said.
He further said that the US is in a conflict with China and its allies, which will determine the future of the world. "The US and China are in a technology competition. The others are not really in the game. The winner of the technology war will win all wars, including economic war and geopolitical war," said Dalio.
Dalio said that it is very plausible for the US to lose its position as the leading global power in 50-100 years.
Emerging market currencies have recently been gaining support amidst softness in the dollar. Asian central banks have started accumulating gold as dollar showed signs of weakness amidst reports that the US is on the verge of a recession phase.
Mark Zandi, chief economist at credit rating agency Moody's, has recently said that the state-level data in the United States shows that the country is "on the edge of recession.
The economy is very close to a recession, based on data about spending, jobs, and manufacturing, he said, adding that he is worried about US tariffs hurting American companies' profits and ongoing troubles in the US housing market.
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