Ray Dalio warns US dollar’s reserve status is at risk

Ray Dalio warns that rising debt, trade tensions, and central bank shifts threaten the US dollar’s reserve status, as investors turn to gold and “capital war” concerns escalate.

Ray Dalio has renewed his warnings about the global financial system, focusing on the potential loss of the US dollar’s reserve currency status. He points to mounting US debt, unresolved trade tensions, and rising tariffs as factors eroding trust in the dollar and the broader monetary order. Dalio observes that central banks are increasingly moving away from fiat currencies and sovereign debt, instead accumulating gold as a safer asset. He describes the current environment as entering a phase of “capital wars,” where foreign nations are less willing to hold American debt, and both holders and issuers of US dollar-denominated assets are growing uneasy. These shifts, Dalio emphasizes, are already visible in market movements, such as surging commodity prices and notable increases in gold and silver. He cautions that these trends could spark a gradual geopolitical realignment with significant implications for the global economy.