Dalio Warns Capital Wars Are Near
Ray Dalio, renowned investor, warned during the Dubai World Government Summit that the world is nearing a tipping point in capital warfare. Countries are engaging in financial confrontation through trade embargos, market blockades, and debt leverage.
Money Is Becoming a Weapon
Dalio noted European investors are concerned about potential sanctions on dollar assets, while the U.S. fears a halt in European capital flows. This fragile interdependence is pushing the global economy toward a new financial battleground.
History Repeats: Capital Controls and Currency Restrictions
Historically, capital wars have led to currency controls and restrictions on cross-border capital movement. Today, sovereign wealth funds and central banks are already adjusting strategies to prepare for such a scenario.
Gold: The Ultimate Hedge
Dalio emphasized that gold remains the best asset for preserving wealth during economic downturns. He recommended maintaining a fixed allocation to gold in investment portfolios as a hedge against systemic risks.