Ray Dalio warns the world is ‘on the brink’ of a capital war of weaponizing money—and gold is the best way for people to protect themselves

Core Viewpoint - The world is entering a "capital war" where financial resources are weaponized, leading to potential widespread conflict among nations [1][2]. Group 1: Capital War and Global Tensions - Ray Dalio warns that countries are increasingly attacking each other through financial means, such as controlling debt ownership, rather than traditional military conflict [2]. - The recent geopolitical tensions, particularly related to U.S. actions towards Greenland, have heightened fears among European investors regarding U.S. securities, potentially leading to a loss of crucial foreign funding for the U.S. [2][3]. - Dalio emphasizes that the current global environment is characterized by mutual fears and could easily escalate into a capital war [2]. Group 2: Economic Indicators and Market Reactions - Following the geopolitical tensions, markets have shifted into a "sell America" mode, negatively impacting the U.S. dollar and increasing yields on Treasury bonds, indicating concerns over rising government debt [4]. - Danish and Swedish pension funds have begun to exit U.S. Treasuries, citing unsustainable U.S. government finances as a primary reason for their divestment [4]. - The selloff in U.S. assets coincided with concerns over the independence of the Federal Reserve, further unsettling global investors [4]. Group 3: Broader Economic Context - Dalio highlights that the U.S. is at a critical juncture in a larger economic cycle, with its power diminishing due to a national debt of $38 trillion, compounded by geopolitical tensions and technological changes [3]. - He asserts that the existing monetary order is on the verge of breakdown, reflecting a significant shift in global economic dynamics [3].