Ray Dalio Outlines Key Global Economic Drivers At Milken Asia Summit: Fed Policies, US-China Tensions, And Tech's Impact

Billionaire Ray Dalio shared his insights on the primary forces shaping the global economy, during Milken Institute’s Asia Summit in Singapore.

What Happened: Dalio, founder of Bridgewater Associates, pointed to the U.S. Federal Reserve’s interest rate decisions and the country’s debt management as significant factors. He questioned the impact of the Fed’s interest rate changes on national debt, reported CNBC.

He also discussed the internal political divide in the U.S., emphasizing the “irreconcilable differences” between political factions. This comes as Vice President Kamala Harris is now seen as more likely to win the 2024 election than former President Donald Trump, according to a CNBC Fed Survey.

Dalio cited the geopolitical tensions between the U.S. and China as another major concern. He mentioned ongoing issues like territorial disputes and economic tariffs, warning of the potential for conflict.

Natural disasters and climate change were also on Dalio’s list. He noted that acts of nature have historically caused more disruption than wars, highlighting the increasing costs of climate change.

Finally, Dalio spoke about the transformative potential of technology. He stressed that those who can effectively adopt and invest in technology will reap significant benefits, potentially even winning military conflicts.

"Whoever wins the technology war is going to win the military war," Dalio said.

See Also: Mark Cuban Asks Elon Musk He Can Directly Question Him About Kamala Harris’ Economic Policies, But Wants This In Exchange

Why It Matters: Dalio’s concerns about U.S. political divisions echo his earlier warnings about potential election chaos if the loser, particularly Trump, refuses to concede. In a recent interview, Dalio expressed his fear for democracy, highlighting the potential for a cutthroat, all-or-nothing approach from both sides.

On the economic front, the World Economic Forum President Borge Brende has also raised alarms about global debt levels nearing historic highs, warning of a potential decade of low growth and the risk of “stagflation” in advanced economies. Brende emphasized the need for continued global trade and urged governments to address the mounting debt situation.

Regarding technology, the intersection of artificial intelligence and cryptocurrency is predicted to inject $20 trillion into the global economy by 2030. This boom has created a shortage of data centers, AI chips, and electricity, with major cloud companies expected to spend nearly $200 billion on data centers by 2025 to meet AI demand.

Dalio’s emphasis on climate change aligns with ongoing criticisms of the World Economic Forum for its perceived hypocrisy in lecturing about climate change while attendees use private jets extensively.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote