Bridgewater Associates founder Ray Dalio says the war with Iran was "a big mistake" that exposed the limits of American power, comparing the moment to Britain's humiliation at Suez.
Speaking on The Diary of a CEO podcast released Thursday, Dalio said the U.S. and other powers are "later in that cycle" of his 80-year framework of rising and declining orders.
Asked whether America has entered the collapse phase, he settled on "the decline." The Litmus Test World leaders, particularly in Asia, have drawn a conclusion from the conflict, Dalio said.
"There's a recognition that the United States doesn't want to fight a war," he said, calling control of the Strait of Hormuz "the litmus test." Americans worried about gas prices and casualties want the conflict "all over fast," he said.
"You can't fight a war that way." Dalio questioned whether Washington would pay the long-term cost of controlling the strait and confronting a country of roughly 90 million people.
