Ray Dalio Believes the US Is on the Brink of a Civil War
The Bridgewater Associates founder said there's a 35% to 40% chance his prediction will play out, but not necessarily with guns
May 17, 2024 05:00 AM
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TL;DR Dalio has predicted that the U.S. might be on the brink of a civil war. In an interview with The Financial Times, Dalio cited political and ideological divides and stressed the potential for armed and ideological internal conflict.
Ray Dalio, the chief investment officer and founder of Bridgewater Associates, has issued a stark warning about the future of the United States.
In an interview with The Financial Times on May 16, Dalio warned that America might be on the brink of a civil war. This prediction comes amidst a deepening ideological and political rift within the nation, which could have far-reaching consequences.
On the Brink
Dalio placed the chance of an internal conflict at 35-40%. He clarified that this might not be the kind of civil war where people "grab guns and start shooting."
Instead, he envisions a scenario in which the U.S. fractures along political and ideological lines. This could lead to a significant shift in power dynamics, with states becoming more autonomous and the federal government losing its authority.
People might start moving to states that more closely align with their views, refusing to abide by federal policies they disagree with, which could further deepen the divide.
However, Dalio did not entirely rule out the possibility of an armed conflict.
He acknowledged the difficulty of predicting whether the nation would cross into much more turbulent times, especially with the upcoming U.S. elections, which could significantly shape the nation's future, and existential risks like artificial intelligence (AI) and climate change looming, which could further exacerbate existing tensions.
Election as a Test for Democracy
Dalio compared the two presidential candidates from opposite sides of the political spectrum: former Republican president Donald Trump and the Democrat incumbent Joe Biden.
He stressed that the November 2024 election would be a test for democracy. Commenting on Trump's potential future policies, Dalio predicted more rightist, nationalistic, isolationist, and protectionist approaches. He mentioned that Trump would likely adopt aggressive policies to fight internal and external enemies, including political adversaries, which could further polarize the nation.
On the other hand, Dalio suggested that Biden, and even more so the Democratic party without Biden, would adopt opposite approaches. "They too will play political hardball," he noted, without revealing his political leanings.
A Lighthearted Suggestion
Interestingly, Dalio half-joked that he would vote for famous singer Taylor Swift to become the next U.S. President.
He shared his observations from her concert in Singapore in March, where he saw people of all sorts and nationalities coming together, suggesting that a unifying figure like Swift could bridge the political divide in the United States.
"It felt like it would have been impossible to fight," he said. "I say this partly as a joke, but if she ran for president and would listen to great advisers, I'd consider supporting her."
Guidance for Life Stages
As a reminder, Dalio recently shared a series of tips for different stages in life.
These include advice for people in their 20s and 30s as they balance life and career and for those in their 40s and 50s navigating the midlife crisis. These insights are applicable not only to personal life but also to the current political and economic climate, as they can help individuals adapt and thrive in uncertain times. Finbold reported these tips on March 23.
"I saw how she brought people of all sorts - and many nationalities - together. It felt like it would have been impossible to fight."
Dalio's predictions and insights offer a sobering look at the possible future of the United States.
Whether his foresight will come to pass remains to be seen, but his comments have sparked widespread attention and debate. We encourage you to critically analyze these predictions and share your thoughts on the potential future of the United States.