Ray Dalio Attacks U.S. Populists and Warns Russia May Be "Lesser Loser" in Ukraine War

Dow Jones2022-07-05

Ray Dalio has hit out at political extremes in the U.S. that don't respect a rules-based system, and warned that Russia is likely to be the "lesser loser" from the Ukraine war as the economic cost to the West causes NATO support to fracture.

The founder of Bridgewater Associates, the world's largest hedge fund with about $150 billion under management, took to Linkedin on the U.S. Independence Day holiday to deliver an update on the forces he believes are shaping the world.

And he's not happy with how things are going in the U.S.

"The remarkable leaders who designed the governance system [after the 1776 declaration of independence] and laid it out in the Constitution created both a principled and practical approach that thus far has lasted for nearly 250 years," Dalio wrote.

But now, some of the essential elements required for representative democracies to work well are being called into question, he noted, such as abiding by election votes and rulings of the Supreme Court.

"With increasing conflict between populists of the right and populists of the left, growing numbers of people are inclined to fight for what they want and what they believe is right rather that work themselves through the rules-based system of consensus and compromise that our Founding Fathers designed."

Meanwhile, the world order is not changing for the better, implied Dalio, if the conflict in Ukraine is a guide.

If Russian President Vladimir Putin ends up controlling the eastern part of Ukraine and manages to remain on the world stage then Russia would be a "lesser loser," Dalio reckoned.

Read:Russia's Putin declares victory in the eastern Ukrainian region of Luhansk

"Because the devastation in Ukraine has been so much greater than it has been in Russia, and because this will be economically costly to Ukraine and/or those countries that will pay to have it rebuilt, the war looks like it will be even more costly to NATO countries, so that also will be relative win for Russia," he added.

In summary he said: "It appears that few countries are lining up strongly against Russia and behind NATO countries, and it appears that support within NATO countries for war is weakening due to its relatively high costs."

Dalio's hedge fund in June increased its short bets against European stocks to nearly $9 billion.

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Comments

  • PearlynCSY
    2022-07-05
    PearlynCSY
    Russian forces shift target to Donetsk as Zelenskyy vows Ukraine will win back captured Luhansk. President Vladimir Putin congratulated Russian troops Monday for “liberating” Ukraine’s eastern Luhansk.Russian forces are now turning their attention to capturing more parts of the neighboring Donetsk region of the Donbas, with the province coming under heavy shelling on Sunday.“We will return thanks to our tactics, thanks to the increase in the supply of modern weapons,” said Ukraine’s President Volodymyr Zelenskyy.
  • CYLiew
    2022-07-05
    CYLiew
    Ok
  • doubleDees
    2022-07-05
    doubleDees
    Okay
  • Benstonk
    2022-07-05
    Benstonk
    New world order
  • Singman
    2022-07-05
    Singman
    Ok
  • _dachad
    2022-07-05
    _dachad
    Good share 
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