The world is facing threats not of a cold war or just a trade war, but a capital war where money is being weaponized, according to billionaire hedge fund manager Ray Dalio. He suggested one asset would be the safest to invest in during volatile times.
The Bridgewater Associates founder said in an interview at the World Governments Summit in Dubai on Tuesday the world is on the cusp of widespread conflict where—instead of ammunition—countries attack each other through the means of controlling the flow of money, such as leveraging debt ownership.
“We are on the brink,” Dalio said. “That means not in, but it means we are quite close to [a capital war], and it would be very easy to go over the brink into a capital war, because there are mutual fears.”
Dalio attributes this escalating discord to President Donald Trump’s recent threats to take over or purchase Greenland from Denmark, which analysts believe weakened the alliance formed through the North Atlantic Treaty Organization (NATO). He said this friction could create fear in European holders of U.S. securities, bonds, and stock, that they could be sanctioned. That anxiety could, in turn, create “reciprocal fear” the U.S. would not be able to get crucial foreign funding, Dalio said.
