Overview

• Ray Dalio, founder of Bridgewater Associates, warns the U.S. is nearing a recession and risks a deeper crisis if current policies are mismanaged.
• Dalio compares the current economic challenges, including rising debt and global power shifts, to the disruptive conditions of the 1930s.
• He criticizes President Trump’s tariff policies as destabilizing, describing them as 'throwing rocks into the production system.'
• Dalio calls for Congress to reduce the federal deficit to 3% of GDP to prevent a supply-demand crisis for debt and broader economic instability.
• Critics, including Jim Cramer, challenge Dalio's grim outlook, accusing him of being overly pessimistic and undermining market confidence.