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Bridgewater Associates founder Ray Dalio has once again issued a serious warning regarding the state of the global economy. Speaking on the sidelines of the World Economic Forum (WEF) in Davos, Switzerland, Dalio stated that the current global monetary order is experiencing structural cracks, with confidence in fiat money and sovereign bonds as a store of value increasingly eroded.
In an interview with CNBC on Tuesday (January 21st), Dalio pointed to central bank behavior as a key indicator. He stated that central banks around the world are now starting to reduce their debt holdings and are shifting to massive gold buying.
"The most significant market mover last year was actually gold, far surpassing the technology sector," he said.
He believes many investors have been lulled by the glittering stock market and have failed to recognize this massive shift in capital flows at a fundamental level.
Dalio warned that trade imbalances and ballooning deficits have the potential to trigger a capital war. In this s