Dalio Warns of Dollar’s Long-Term Decline, Highlights Gold and Yuan Outperformance – Crypto Implications
Ray Dalio, founder of Bridgewater Associates, has issued a stark warning about the US dollar's sustained weakness against Gold and major currencies. By 2025, Dalio anticipates a decisive shift in global capital flows, with the dollar already down 39% against gold and 12-13% against the euro and Swiss franc. "The biggest market moves of the year resulted from weak fiat currencies falling hardest," Dalio noted in his year-end analysis.
Gold surged 65% in dollar terms, eclipsing the S&P 500 by 47%. European and Chinese equities outperformed US stocks by 23% and 21% respectively, signaling what Dalio calls "a wealth transfer away from America." The dollar's decline stems from structural fiscal pressures, with nearly $10tn in debt requiring refinancing amid Fed easing policies that make long-term debt instruments increasingly unattractive.
