(Kitco News) The U.S. and China are on the brink of war, billionaire and Bridgewater’s founder Ray Dalio warned in a letter he penned on LinkedIn. “We are on the brink of an economic resources war,” the founder of the world’s largest hedge fund wrote last week. And the two nations are beyond “the ability to talk,” he said.
Dalio pointed out that the two nations are close to a sanctions war and/or military war. And even though neither side wants a conflict, one is pretty probable. “A) each side is very close to the other’s red lines, b) each side is using brinksmanship to push the other at the risk of crossing each other’s red lines, and c) politics will probably cause more aggressive brinksmanship over the next 18 months,” Dalio wrote.
And the next 18 months will be especially risky as the U.S. embarks on the 2024 election season, he added. “The political timetable of the election cycle between now and the 2024 elections in the United States and Taiwan will likely lead to more push-the-limit anti-Chinese brinksmanship from the US,” Dalio noted.
“Because China and the US are already at the edge of war, pushing hard against China over the next 18 months will be very risky.” Hot topics will include Taiwan, Chinese military exercises, China’s relationship with Russia, economic sanctions, and control over resources and essential technologies.
For the rest of this article: https://www.kitco.com/news/2023-05-01/Ray-Dalio-The-U-S-and-China-are-on-the-brink-of-an-economic-resources-war.html