Hedge Fund Pioneer Says "Signs of US Decline Are Visible... Its Status Will Be Shaken Within 10 Years"

Ray Dalio, Founder of Bridgewater Associates
Large-Scale Debt, Wealth Gap, China's Rise... Dollar's Status Also at Risk

▲Ray Dalio, Founder of Bridgewater Associates [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund and known as the "godfather of hedge funds," said that signs of decline are visible in the United States today.

He added that the capitalism, which was the foundation of growth for the United States after securing hegemony following the end of World War II in 1945, is broken, and if it is not corrected, the U.S. will face considerable hardship in the future.

On the 17th (local time), Dalio said in a phone interview with U.S. economic media MarketWatch, "If the U.S. does not properly address three issues?massive debt, wealth inequality, and the rise of China?its position in the world could be shaken within the next 5 to 10 years."

He particularly cited the example of the British Empire, which declined due to enormous debt, pointing out that the U.S. is currently suffering from massive debt as well.

He further predicted that if the U.S. continues to spend more than it earns and accumulates debt, within the next five years, foreign lenders will be reluctant to lend money, and the purchasing power of the dollar will no longer be valued as it is today.

Additionally, he identified wealth inequality and unequal opportunities within the U.S. as factors that endanger the social system.

Dalio added that if the issues of wealth inequality and massive debt are not resolved, the status of the dollar as the world's reserve currency could be at risk.

Moreover, Dalio said that along with the problems the U.S. faces, the rise of China will bring significant changes to the world within the next five years, and this should be kept in mind during the upcoming U.S. presidential election in November.

This content was produced with the assistance of AI translation services.