Ray Dalio expects the economic crisis worse than stagnation: “I am concerned about something worse than stagnation, if this is not treated well.”

In an interview on Sunday, Ray DalioThe founder of Bridgewateer Associats expressed his concerns about the potential economic crisis that can exceed the recession if the current economic policies are not managed effectively.

What happenedDalio shared his fears on Sunday on the Meet The Press in NBC. He warned that the United States is on the brink of recession and the economic shrinkage could be severe on the horizon if the situation is not controlled correctly.

Dalio, who has previously expected the 2008 financial crisis, drew attention to the collapse of the monetary system and the major changes in the local and global system. He directed the similarities between the current and thirties of the last century, in reference to the sabotage mix of definitions, excessive debts, and an increasing force that defies the current power.

“I think we are now at the decision -making point and very close to the recession,” Dalio He said NBC. “I am worried about something worse than stagnation, if this is not treated well.”

It was specifically highlighted the in sustainable growth of US debt, low manufacturing in the United States, and the country’s increasing dependence on other countries for basic elements. Dalio called on Congress members to commit to reducing the budget deficit to 3 % of GDP, with a warning of a problem of demand for religion if this is not achieved.

Also read: Ray Dalio’s immortal stock advice: “Don’t try the market time yourself because you will likely lose.”

He added: “If they do not do that, we will face a problem with the presentation of religion at the same time that we face these other problems, and the results of this will be worse than the normal recession.”

In the worst scenario in Dalio, the global economy may face a turmoil, a potential military conflict can arise, and internal conflict may lead to a deviation from known democratic standards.

Why do it matterDalio predictions are important given that his recruitment record accurately in the 2008 financial crisis. Its concerns about the current economic policies and the possibility of a very economic shrinkage highlighting the importance of effective management and policy reform.

Compared with the thirties of the twentieth century is a blatant reminder of the potential consequences of economic mismanagement and can serve as an invitation to wake up to politics.

The specific issues referred to by Dalio, such as the in sustainable growth of American debt and the decline in American manufacturing, are important areas that must be addressed to prevent a possible crisis.

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