Billionaire investor Ray Dalio has warned that the United States is heading towards a form of 'civil war' driven by spiralling government debt, widening wealth gaps, and internal disorder. The founder of Bridgewater Associates, who predicted the 2008 financial crisis, said the nation faces 'irreconcilable differences' that could lead to conflict, though not necessarily with guns.
In an interview with Bloomberg, Dalio compared the current situation to the late 1930s, when the US experienced an economic downturn amid the Great Depression and global tensions escalated. He described rising national debt as 'plaque in the arteries' that squeezes out spending, and noted that public debt has surpassed $30 trillion, equivalent to 99% of US GDP.
Dalio also highlighted the stark wealth disparity, with the top 10% of earners holding more than two-thirds of the nation's wealth, while the bottom 50% hold less than 4%. 'When there are larger wealth gaps and values gaps, then there are greater conflicts,' he said, adding that geopolitical tensions, technological changes, and natural disasters further contribute to disorder.
While Dalio dismissed fears of a world war, he stressed that each sector faces its own 'war' and that these conflicts will become tests of power. He urged vigilance, warning that ignoring these risks only increases the danger. Dalio has previously raised concerns about political polarisation and the potential for recession or depression due to market instability from trade tariffs.
