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Hedge fund billionaire says US may face ‘worse than a recession’ from Trump tariffs (www.theguardian.com)

submitted 6 days ago by MicroWave@lemmy.world to c/economics@lemmy.world

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Ray Dalio’s comments come after rocky week across stock markets after policies including 145% tariff raise on China

Billionaire investor Ray Dalio said that he is worried the US will experience “something worse than a recession” as a result of Donald Trump’s trade policies.

Speaking to NBC’s Meet the Press on Sunday, the 75-year-old hedge fund manager said: “I think that right now we are at a decision-making point and very close to a recession. And I’m worried about something worse than a recession if this isn’t handled well.”

He went on to add: “A recession is two negative quarters of GDP and whether it goes slightly there. We always have those things. We have something that’s much more profound. We have a breaking down of the monetary order. We are going to change the monetary order because we cannot spend the amounts of money.”

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[–] UnderpantsWeevil@lemmy.world 5 points 6 days ago (1 children)

Economic downturns tend to cause social unrest which legitimize expansion of the security state.

In this case, it appears that a fascist dictatorship is deliberately inducing the downtown to justify expansion of the DHS.

Naomi Klein laid out how this has happened in the past (particularly in the former Soviet states after the break up of the USSR) in her book Shock Doctrine. The pattern has also been laid out as a counter-insurgency strategy in Vincent Bevins's The Jakarta Method.

But the nut of it is that you tend to get both.

[–] huppakee@lemm.ee 1 points 6 days ago

Thanks for the tip. Don't want to argue but in the case I could have either I'd definitely pick the recession.