Dalio pointed out that the United States is currently very close to an economic slowdown, and if things are not handled properly, something worse could happen.

As President Donald Trump’s trade war escalated with tariff tariffs, bringing economic recession concerns, American billionaire investor Ray Dalio warned that the U.S. economy could face something worse than a recession. Speaking to NBC, the hedge fund billionaire stated, “I think we are at a decision point right now and very close to a recession. I am worried that if this is not handled well, something worse than a recession could happen.”

Dalio reminded that a recession means two consecutive quarters of negative gross domestic product or a trend in that direction. “These have always happened. Right now, there is something much bigger at stake. We are faced with the collapse of the monetary system. We will change the monetary system because we cannot spend money in these quantities,” he said. “HISTORY REPEATS ITSELF” Dalio’s statement came after the announcement of a 145% tariff on China and 125% on the United States. Describing major changes in both the domestic and global order in the United States, the billionaire referred to what happened in the 1930s, saying, “I have read history; it repeats itself over and over. So, look at tariffs, debt, the rising power that challenges existing power, these factors, changes in systems, in orders – they are very destructive. The way to deal with them might create something much worse than a recession. Or, it could be dealt with effectively.”

Having accurately predicted a recession in 2008, Dalio stated that the current economic situation in the United States is at a crossroads. The billionaire mentioned that the U.S. budget deficit could be reduced to 3% of the gross domestic product, but if nothing is done, this rate could reach around 7%.