“Emotional” political polarization and finical inequality could lead to a Civil War-like event in the U.S. in the next 10 years, according to famed hedge fund founder Ray Dalio. He predicts a 30 percent chance of this happening.
He made his bold claims in his new book, “Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail.”
“No empire lasts forever,” wrote Dalio, who built the world’s largest hedge fund, with assets in excess of $150 billion. The billionaire founder of Bridgewater Associates is the 88th richest person in the world.
In his book, Dalio presents the case that the “confluence of rising U.S. debt and income disparities, along with America’s diminished influence, has put the country at risk of not just economic hardship but war. Specifically, he points to growing debt and near-zero interest rates that have led to massive printing of money ($16 trillion of debt at negative interest rates this year, by Dalio’s estimates), increased conflict and polarization due to widening wealth gaps, and China’s increased ability to challenge U.S. hegemony on the world stage,” Forbes reported.
Dalio’s reasons are the rules of governance are being “ignored” and the “exceptional amount of polarization” currently in the country, The Daily Mail reported.
“For example, when close elections are adjudicated, and the losers respect the decisions, it is clear that the order is respected,” he wrote. “When power is fought over and grabbed, that clearly signals the significant risk of a revolutionary change with all its attendant disorder.’
He also noted that people, including high-ranking officials, have openly questioned the validity of recent elections and expressed their willingness to fight for their beliefs, The Daily Mail reported.
As proof of the growing discontent in the country, he cited several studies showing the growing impassioned divide between Republicans and Democrats. Such as one survey that found 15 percent of Republicans and 20 percent of Democrats believe the country would be better off if a majority of the opposing political party “just died.”
He also cited another study that found that 80 percent of Democrats think that racists have taken over the Republican Party, and 82 percent of Republicans think that socialists control the Democratic Party.
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But all is not loss; the billionaire thinks there could be a positive outcome if these issues are addressed.
“It’s very important that we deal with this now,” he wrote. “We can have a type of civil war or international war based on how we are behaving with each other and our financial conditions.”