Ray Dalio names the top five forces shaping the global economy

Ray Dalio names the top five forces shaping the global economy


Ray Dalio, founder of Bridgewater Associates, speaks onstage during The Wall Street Journal’s 2024 The Future Of Everything Festival at Spring Studios on May 22, 2024 in New York City

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SINGAPORE — U.S. billionaire Ray Dalio named the top five forces at the front and center of the world’s economy. 

Speaking at the Milken Institute’s Asia Summit in Singapore, the founder of Bridgewater Associates said the five factors are interrelated and often cyclical. Dalio made his remarks Wednesday ahead of the U.S. Federal Reserve’s interest rate decision.

1. Debt, money and the economic cycle

The U.S. central bank has kept benchmark rates at their highest level in 23 years, leading the government to allocate $1.049 trillion for debt service — an increase of 30% compared with a year ago. This is part of an anticipated total of $1.158 trillion in payments for the entire year.

“What is the value of it and as one man’s debts or another man’s assets? How is it as a storehold of wealth? These are important questions that are pressing questions,” he threw the question out to attendees.

2. Internal order and disorder

“The second is the issue of internal order and disorder,” Dalio said, referring to U.S. politics ahead of the election.

“There are irreconcilable differences between the right and the left, prompted by large wealth and value gaps… and they call into question even the orderly transition of power,” he added.

For the first time in the 2024 election cycle, Vice President Kamala Harris is now considered more likely to win than former President Donald Trump, a CNBC Fed Survey released Tuesday showed.

Last week, the candidates debated issues from abortion rights to tariffs and other policy proposals.

Still, no matter who occupies the White House, the president’s policy agenda has limited impact on the overall health of the U.S. economy.

3. Great power conflicts

4. ‘Acts of nature’

5. Technology



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