Chainfeeds Briefing:
We are witnessing a typical collapse of a major monetary, gepolitical and georder.
Article Source:
https://www.techflowpost.com/article/detail_24846.html
Article Author:
Ray Dalio
Perspective:
Ray Dalio: At this moment, people are justifia lot of attention the tariffs massive impact on markets and the but almost no one on reasons behind these tariffs and potentially more significant disruptions. Don't misunderstand me - I'm these tariffs are not important they are indeed very events, and we all know that US President Trump is the key figure driving these tariffs. However, most people overlook the fundamental background that led election and prompted these tariffs. They also largely ignore the more important forces driving everything, including the forces behind the tariffs. What we want must remember now is a larger and fact: we are witnessing are typical collapse of a major monetary, political,al ordergeopolitical order. Such a collapse typically occurs once in a lifetime, but has happened multiple times in history, emerging whenever unsustainable conditions arise. More Specifically: 1) The monetary/economic order is collapsing because there is too much existing excessive debt, new new debt is accumulating too a quickly, and capital markets and the economy depend on this unsustainable massive debt. Thisustainability due stems from severe imbalances - on one side,btors (like the US) have heavy debt burdens yet continue borrowing to fund over-consumption because they are addtoicted on otheritor China hold too assets and rely on exporting goods to these debtor countries (like the US) to maintain their economies. Enormous pressure demands some form of correction to these imbalances, which will fundamentally change the monetary order. 2) The US domestic political order is collapsing due to massive between Americans in education levels, opportunities, productivity, income and wealth, and values - coupled with the existing political system's inability to address these issues. This manifests in ruthless power struggles between left between and wingpopfighting for control of affairs. This leads to to the erosion of democracy, which requires compromise and rule of law, history shows both typically break down during such periods. ) The international geopolitical order is collapsing because the era of a dominant power (the US) establishing and dictating order with other countries following is ending is ending. The multilateral cooperative world order once led by the US is being replaced by replaced by ununilateral "ateralism of "might makes In this new order, US, the powerful country is shifting towards "a "America First" unilateralalist approach. This is demonstrated through US-led trade wars, geopolitical conflicts, technology wars, and in some cases, confrontmilitary conflicts. conflicts. 4) Natural disasters (droughts, floods, and pandemics) are causing increasingly destructive impacts; 5) Technological revolutions (such as artificial intelligence) will have major significant impacts on on on all,/debt/economic political orders, international orders,, (by influencing economic and military military interactions interactions between countries) and the costs of addressing natural disasters.
Content Source
