Wednesday, February 21

Ray Dalio: “The United States is heading towards civil war”

The Wall Street Guru Ray Dalio He assures that the United States is developing a “classic path” towards “some form of civil war” due to the complexities that society is going through, the billionaire published on his Linkedin account.

The president of the hedge fund Bridgewater He pointed out that the situation of high deficit, with high taxes and skyrocketing inflation causes social inequality that leads to a civil war.

“History shows that raise taxes and cut spending when there are large wealth gaps and poor economic conditions has been an indicator of civil wars or revolutions of some kind more than anything else,” Dalio said.

The danger of populism and extremism

The conflict would also be caused by the “washington partisanship” and it remains to be seen “if the fights can be more or less violent”, collects the text published on the social network.

The geopolitical scenario does not help either, considers Dalio, since he estimates that when “foreign powers such as China and Russia challenge a country (USA) with high levels of disagreement there is a period of risk and I think we are in that period”.

The disagreements are framed for Dalio in the increase of populism and extremism, in the struggle between the left and the right as “classic indicators of future war conflicts”, he said.

The investor wrote that extremists see respect for the law as something secondary, with victory being the only relevant thing, and with this conflicts are reinforced and new unusual situations such as those that have recently occurred are created.

Tensions in the 2024 elections

An analysis that seems to refer to what happened on January 6, 2021 when the most extreme supporters of the former president of the United States Donald Trump stormed the Capitol in an attempt to annul the result of the presidential elections in which the current president was elected, Joe Biden.

The assault, in which there were five dead and numerous wounded, came after a speech by Trump near the Capitol and with a belligerent tone.

Dalio estimates that the presidential elections of 2024 can be a spur for the possible civil war if aggressive speeches and constant confrontation are maintained.

Dalio’s publication comes in full promotion of his new book dealing with economic histories and the rise and fall of nations.