Ray Dalio warns of the risk of a global economic collapse and the role of cryptocurrency in the future.

Ray Dalio, the founder of Bridgewater Associates, has given a serious outlook on the future of the global economy during an interview on NBC's Meet the Press on April 13. Based on decades of historical research, he warns that critical systems may be at risk of collapse.

Dalio said: "We are facing a serious financial problem and imbalance. There are five major forces in history that control everything. The first is the monetary, credit, debt, and economic cycles, which lead to a cyclical increase in debt. When this debt gets too big, we're in trouble." As a veteran observer of macroeconomic trends, he points to the convergence of forces such as internal political conflicts, global power struggles, natural events, and technological upheaval, all of which are signs of deep systemic tension.

Billionaire investors express particular concern about current fiscal trends and changes in international policy. He observes that the global economic system is being strained by short-term interventions and a lack of effective coordination.

Dalio calls on lawmakers and global leaders to act swiftly and pragmatically, emphasizing: "I believe we are on the brink of a significant decision and very close to a recession. I am concerned about something even worse if not handled properly."

He proposed a "3% commitment" to reduce the U.S. federal budget deficit to 3% of GDP, warning that: "If this goal is not met and the fiscal imbalance continues to increase, the consequences will be worse than a typical recession."

When asked about conditions that could be worse than a recession, Dalio explained: "We could end up in a situation where if the asset base is threatened due to excessive supply and demand, coupled with monetary inflation, it would lead to significant disruptions, similar to the collapse of monetary systems in 1971."

"It could be like the crisis of 2008, and it could be even more severe if other problems happened simultaneously. Imagine if we faced an economic downturn, political and international conflicts at the same time," Dalio added.

Dalio emphasized that while these risks may be avoidable, inaction or a wrong decision could cause long-term damage. Last week, he warned of a once-in-a-lifetime global crisis, obscured by distractions from tariffs.

In addition, Dalio also mentioned the growing role of cryptocurrencies in the current economic context. He believes that cryptocurrencies could play an important role in reshaping the global financial system, especially as traditional systems are facing difficulties.

However, he also warned that volatility and a lack of clear regulations could pose significant risks to investors and the economy as a whole. Dalio emphasized the importance of careful consideration and establishing reasonable regulations to ensure that cryptocurrencies can develop sustainably and contribute positively to the global economy.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

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