Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, and known as the "godfather of hedge funds," expressed concern that a situation more serious than a recession could arise if U.S. President Donald Trump does not properly handle economic policies such as tariffs.

On the 13th (local time), Dalio appeared on NBC's "Meet The Press" and said, "President Trump's tariff policies and the rising U.S. debt are creating a new unilateral world order," adding, "If these issues are not properly addressed, a situation more serious than a recession could occur."

Dalio pointed to the combination of import tariffs, excessive national debt, and "emerging powers challenging the established order," calling it "a highly disruptive change." He particularly emphasized that the recent increase in U.S. debt is unsustainable and urged reducing the fiscal deficit to around 3% of GDP. He warned, "Otherwise, we will face supply and demand issues for debt along with other problems, and the result will be more serious than a typical recession."

US President Donald Trump is giving a speech at the White House on the 10th (local time). Photo by AFP

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Dalio has recently warned that due to the unsustainable rise in U.S. debt and the decline of American manufacturing, the U.S. will become dependent on other countries for essential goods.

When asked to explain his concerns about the worst-case scenario, he replied, "I worry about the collapse of monetary order, internal conflict that is not the normal democratic process as we know it, international disputes that cause major disruptions to the global economy, and even situations that could lead to military conflict."

According to NBC, Bridgewater had previously predicted the 2008 financial crisis. In 2007, before the crisis hit, Bridgewater warned, "There are significant risks inherent in the system," and later said, "We expect interest rates to rise until cracks appear in the financial system." A few months later, the recession began.

A trader is bowing his head at the New York Stock Exchange in the United States. Photo by Reuters Yonhap News

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On the 8th, Dalio pointed out on social media platform X (formerly Twitter) that investors are too narrowly focused on tariffs. At that time, he also warned, "What is far more important is the fact that we are now witnessing the collapse of the macro monetary, political, and geopolitical order," adding, "Such a collapse is a once-in-a-lifetime event, but similar unsustainable conditions have repeatedly occurred throughout history."

Concerns about the economy are also growing among Americans. According to a poll released on the 13th (local time) by CBS and polling agency YouGov, conducted from the 8th to the 11th among 2,410 American adults (margin of error ±2.4 percentage points), 75% of respondents expect the Trump administration's tariff policy to affect price increases in the short term. Regarding the long-term impact of tariffs, 48% of respondents predicted prices would rise, while 30% expected prices to fall.

Regarding the short-term impact of tariffs on the U.S. economy, 65% said it would get worse. Only 8% responded that it would get better. In the survey on long-term effects, 42% said it would get worse, while 34% said it would get better.

Regarding President Trump's tariff and trade policy goals, 51% said they "approve," but 63% said they "disapprove" of his approach.