Dalio Warns: U.S. on Brink of Collapse, Gold as Sole Refuge

Dalio Warns of the Empire Cycle's Critical Phase

Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund, recently warned during an interview that the U.S. is in the fifth stage of its empire cycle — on the brink of systemic breakdown and conflict.

The Five Forces Reshaping Global Dynamics

Dalio outlined five major forces currently shaping the world: the monetary and credit cycle, internal political order, geopolitical order, natural forces, and technological change. These elements are combining to create an increasingly volatile global environment.

Mounting Debt Crisis and the Dollar's Uncertain Future

With extreme political polarization and unsustainable debt levels, the U.S. economic foundation is growing more fragile. Dalio warned that continued central bank money printing to cover deficits will ultimately erode the value of the dollar.

Gold: The Only True Safe Haven

In light of these risks, Dalio recommends that investors allocate between 5% and 15% of their portfolios to gold. He emphasized that gold is the only asset not backed by someone else's liability, making it a genuine hedge during times of crisis.