Here's How Ray Dalio Thinks Trump's Second Term Could Reshape the US and the World

Donald Trump‘s second term as president is expected to bring about a significant shift in the global and domestic order, with Trump’s selections for key posts set to aid in this transformation.

What Happened: The incoming second Trump administration is preparing for a major revamp of the government and domestic order, writes Ray Dalio at Time.com. The focus is on an “America first” foreign policy and gearing up for a potential external conflict with China, seen as America’s biggest threat.

Key appointments include Elon Musk and Vivek Ramaswamy, who are set to lead the newly proposed Department of Government Efficiency (DOGE).

Robert F. Kennedy Jr. could oversee a radical overhaul of the healthcare system as Secretary of Health and Human Services. Sen. Marco Rubio (R-Fla.), Tulsi Gabbard, and Pete Hegseth will be Trump’s nominees for Secretary of State, Director of National Intelligence, and Secretary of Defense, respectively.

Dalio argues that these individuals and others are integral to Trump’s mission to dismantle the so-called “deep state” and replace it with a new domestic order focused on bolstering economic strength and countering foreign adversaries.

“They are all win-at-all-cost loyalists to the leader and to the mission of bringing down the so-called "deep state" and replacing it with a new domestic order that they hope will create maximum economic strength and fight foreign enemies,” writes Dalio.

Dalio likens the Trump team’s strategy to a corporate raider initiating a hostile takeover of an inefficient company, making substantial reforms by altering personnel, reducing costs, and integrating new technologies. This approach is expected to have a profound impact on the domestic and global orders.

Also Read: Majority of Americans Approve of Trump’s Second-Term Agenda

“It is now clear that Donald Trump and those he is choosing will reform government and the country like a corporate raider engaging in a hostile takeover of an inefficient company, making huge reforms to it by changing the people, slashing costs, and infusing it with new technologies,” he added.

The partnership between Trump and Musk is expected to be the primary catalyst for the implementation of this new domestic order. The administration’s policies are projected to favor Wall Street, tech companies, and businesses hampered by regulations and tax concerns.

Dalio says the U.S. position in economic and geopolitical conflicts, especially with China, is also set to shape domestic security and policies.

He wrote, “We are now coming to the end of an era led by the United States, in which countries tried to work out together how to be with each other through multinational organizations with guiding principles and rules, and into a more self-interested, law-of-the-jungle-type order with the United States being one of the two biggest players and China the other— and the fight being largely the classic one of capitalism versus communism.”

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.