Billionaire investor warns democracy is under threat

Billionaire investor warns democracy is under threat

A billionaire investor known for accurately forecasting the global financial crisis has warned that the upcoming US election could plunge the world’s largest economy into significant turmoil.

As the highly anticipated televised debate between candidates Kamala Harris and Donald Trump unfolded, investor Ray Dalio expressed a profound concern for the state of democracy, regardless of the outcome on November 4.

Mr. Dalio, the founder of the world’s largest hedge fund, remains a focal point for investors who closely monitor his stock selections.

During a recent interview with the BBC, he expressed concern over the potential ramifications of a loss in the upcoming election, particularly for the Republicans and Donald Trump. He noted, “There’s a possibility that the loser might not accept losing, leading to a scenario where both the left and the right are entrenched in a win-at-all-cost mentality, making compromise nearly impossible.”

“I have a profound concern for the state of democracy,” he stated.

Mr Dalio expressed his anticipation of internal migration among states, driven by political, economic, and moral divisions, irrespective of who emerges as the victor.

“Many individuals from states such as California, New York, and New Jersey are relocating to Florida and Texas. This trend is driven not only by tax considerations but also by differing values,” he stated. There appears to be a significant disparity in values.

“This evokes the era from 1930 to 1945, characterized by an economic crisis that led to the rise of dictatorships from democracies.” Germany, Italy, Spain, and Japan experienced parliamentary systems that ultimately collapsed due to internal strife among the hard left, hard right, communism, and fascism. “We are witnessing contemporary iterations of certain phenomena,” he stated.

Evidence suggests that values increasingly influence migration patterns in the United States. In July, Elon Musk revealed plans to relocate the headquarters of his companies, X and SpaceX, from California to Texas. This decision was influenced by recent regulations prohibiting schools from informing parents about their children’s desires to change their gender identity.

At 75, Dalio founded Bridgewater Associates, which became the largest hedge fund globally, boasting $124 billion in assets. He stated that he believed the likelihood of a civil war was “low, but cannot be dismissed.”

Dalio, notably, only asserts that he is in error. He maintains that he is correct more frequently than he is incorrect.

“Those who rely on predictions and forecasts may face harsh realities.” “I’ve been accurate in the markets approximately 65% of the time,” he stated.

However, regarding the pressing issue in the United States, he is playing it safe and remains evasive about his predictions regarding the potential outcomes for Trump or Harris.

“The outcome of this election remains uncertain, and it is unclear how various factors will unfold.” “I am aware that there exists a remarkably high likelihood of instability,” he concluded.

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