Overview

• The Bridgewater founder ties widening wealth and value gaps and a collapse in trust to a surge in more extreme policies that weaken democratic norms.
• He says attacks on the Federal Reserve and pressure to keep rates low risk undermining the dollar’s credibility, citing attempts to fire Governor Lisa Cook and noting investor moves from Treasuries into gold.
• Dalio reiterates that deficits projected under the latest U.S. budget could trigger a “debt-induced heart attack” for the economy in roughly three years.
• He points to expanded state control over industry, highlighting the White House taking a 10% stake in Intel as evidence of autocratic-style economic management.
• European Central Bank president Christine Lagarde separately warns that compromising Fed independence would endanger the U.S. economy and global stability.