Billionaire Ray Dalio, founder of Bridgewater Associates, addressed the pressing issues of our time during his speech at CONVERGE LIVE in Singapore. Dalio emphasized that we are living in an era of rapid change marked by rising geopolitical tensions, shifting economic systems, and unprecedented technological development. He identified five major forces reshaping the world order: government debt, populism, conflict, climate, and technology.
Dalio underscored the problem of escalating government debt, describing it as an issue of "paramount importance." The current U.S. debt has surpassed $36.2 trillion, and he has previously warned about America's increasing financial obligations. He stressed the need for the U.S. to reduce its deficit from 7.2% to 3% of GDP to stabilize the situation.
"There's a big cycle of increasing debt relative to incomes… that is going to lead to a big change in the monetary order that we're now facing," Dalio remarked.
The billionaire also pointed out that how humans interact with each other will be "particularly important" in the next five to ten years. He highlighted the growing divide between political ideologies and the potential for conflict stemming from irreconcilable differences over money and values.
"There's the left and the right… it gets to the point where there are irreconcilable differences over money and values," he explained.
Dalio further elaborated on the transition to a new world order, noting that rising powers are challenging the existing powers, which historically have been led by the United States.
"It's determined by the winners of the last war. They set out the rules… but there's a change in the world order as rising powers challenge existing declining powers. And so we are seeing that change in the world order, from one that was unilaterally, really largely controlled by the United States, to something that's very different," he said.
In addition to these observations, Dalio shared his belief in achieving spirituality through a sense of connectedness to both the universe and people. He advised that meditation can provide calmness and equanimity, which are essential in navigating these turbulent times.
"The best advice that I could give anybody, I think, it would be to meditate, and that's because it gives you a calmness and equanimity. It gives you a sense of spirituality, which means… [a] connectedness to the universe, connectedness to people," Dalio advised.