Ray Dalio Warns Global Monetary System Faces Potential Collapse

Billionaire investor Ray Dalio has warned that the world is "on the brink" of a breakdown in the global monetary order. The former CEO of hedge fund Bridgewater Associates shared these concerns in an April 28 post on social media platform X.

According to Dalio, the Trump administration's tariff policies are accelerating this potential breakdown. He points to how these trade actions are fueling deglobalization and creating unsustainable trade imbalances that fracture the monetary, political, and international world orders.

The legendary investor noted that importers and exporters, particularly between the US and China, are rapidly reducing their interdependencies. "They're recognizing that whatever happens with tariffs, these problems won't go away, and that radically reduced interdependencies with the US is a reality that has to be planned for," Dalio stated.

Dalio described America's position as the world's largest consumer of manufactured goods and biggest debt issuer as increasingly unsustainable. He called the expectation that trade partners would continue selling to the US and accept dollars in return "naive thinking."

As a result, Dalio predicts more countries may form new trade networks using alternative currencies to bypass the US dollar. While not specifying which alternatives might challenge dollar dominance, he has previously advocated for "hard money" assets like Bitcoin and gold during periods of global uncertainty.

The billionaire urged the US to take a more coordinated approach to address trade imbalances and become more self-sufficient. He suggested that directly confronting US government debt issues would yield better results than the current approach.

China has received the harshest tariffs from the Trump administration at 145% on all imports, while Canada and Mexico face 25% tariffs on most goods. Several key Bitcoin mining manufacturing countries including Thailand (36%), Indonesia (32%), and Malaysia (24%) have also been hit with significant tariffs, affecting machine imports to the US.

The trend toward alternative financial systems continues to gain momentum. On April 28, Stacks Asia DLT Foundation became the first Bitcoin-based organization to establish an official presence in the Middle East through a partnership with Abu Dhabi Global Market. The collaboration aims to promote institutional Bitcoin adoption across Middle Eastern and Asian regions.