U.S. teetering toward autocratic rule akin to the 1930s, cautions Ray Dalio, a renowned hedge fund magnate
Ray Dalio, the founder of Bridgewater Associates, the world's largest hedge fund, has publicly criticized U.S. President Donald Trump's economic and financial policies. In an interview with the "Financial Times", Dalio expressed his concerns about the direction the U.S. is heading under Trump's leadership.
Dalio warns that Trump's policies are leading the U.S. towards autocracy. He believes the U.S. government's intervention in chipmaker Intel is an autocratic move, as the government recently acquired a 10% stake in the company to help stabilize it. Dalio expressed concern about the long-term impact on market dynamics and corporate governance.
The U.S. is on the brink of a debt crisis due to years of high deficits. The Fed faces a difficult decision: either raise interest rates and risk a debt crisis, or print money to buy the debt, both of which weaken the dollar. A politically weakened Fed may not be able to defend the dollar, and Trump's supporters could soon form a majority in the Fed's governing body.
For months, Trump has been pressuring the Fed to lower interest rates, unsuccessfully so far. Trump's plan exacerbates the danger of a debt crisis. Investors are pulling out of U.S. Treasury bonds and turning to gold, with the gold price reaching a record high of $3,500 per ounce yesterday.
Dalio's concerns extend to Trump's attacks on the Federal Reserve (Fed). He compares Trump's policies to those of the 1930s and 40s, when crises led to strong government control over companies. Trump ordered the removal of Fed Governor Lisa Cook, further fuelling concerns about the Fed's independence.
Dalio's criticism of Trump's policies is reminiscent of his warnings about the dangers of autocracy. He believes that Trump's policies are leading the U.S. towards a more authoritarian form of government, a danger that many in the financial world fear but are reluctant to speak out against due to potential retaliation. Dalio is one of the few in the financial world who openly criticizes Trump.
Read also:
- Tobacco industry's suggested changes on a legislative modification are disregarded by health journalists
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Uncovering Political Ad Transparency: A Guide to Investigating opponent's Political Advertisements in the Digital Realm
- Elon Musk praises JD Vance's debate performance against Tim Walz
