Ray Dalio says US is suffering a breakdown of ‘monetary, political and geopolitical orders.’ Here’s what you can do now

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Waves of tariffs from President Donald Trump unleashed chaos crossed planetary markets successful 2025, reigniting commercialized tensions and rattling investors. Throughout the year, dozens of enforcement orders connected tariffs and modifications to existing tariffs came into effect (1), with Americans experiencing the largest taxation summation since 1993 astatine $1,100 per household — rising to $1,400 successful 2026 (2).

But portion a taxation summation whitethorn beryllium unpleasant, billionaire hedge money manager Ray Dalio says the existent tempest has yet to arrive.

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In a lengthy societal media station successful April, Dalio argued that the tariff play is simply a grounds of deeper structural problems.

“We are seeing a classical breakdown of the large monetary, governmental and geopolitical orders,” helium wrote (3).

Dalio outlined 5 forces helium described arsenic reshaping the planetary landscape.

1. The planetary monetary order

Dalio said the planetary economical bid is breaking down owed to unsustainable indebtedness and heavy imbalances betwixt debtor nations similar the U.S. and creditor nations similar China. As these imbalances unwind, Dalio warned the existent monetary bid volition beryllium forced to alteration successful “big disruptive ways,” with large consequences for superior markets and the broader economy.

Recently, helium besides declared that the AI bubble is acceptable to burst, but that investors should clasp connected a small portion longer earlier selling (4).

2. The governmental order

Dalio sees the governmental bid of democracies breaking down nether the value of what helium calls “huge gaps” successful people’s education, income and accidental levels, arsenic good arsenic values. He said past shows this benignant of situation often gives emergence to “strong autocratic leaders” — particularly erstwhile paired with economical and marketplace turmoil.

3. The planetary powerfulness structure

Dalio was blunt connected this point: “The planetary geopolitical satellite bid is breaking down due to the fact that the epoch of 1 ascendant powerfulness (the U.S.) that dictates the bid that different countries travel is over.” He argued it’s being replaced by a “unilateral, power-rules” approach. While the U.S. remains the astir almighty nation, Dalio said it is present operating nether a much self-interested, “America First” framework.