Group 1 - Billionaire investor Ray Dalio warns that the post-World War II global order has "broken down," with rising great-power tensions, capital wars, and mounting debt risks reshaping the international financial system [1][3] - Dalio describes the current era as one of "great power politics," characterized by sanctions, asset freezes, and the weaponization of money [1][3] - The decades-long U.S.-led global stability system is unraveling, with countries increasingly prioritizing their own strategic interests over shared rules [3] Group 2 - Dalio advises investors to sell all debt and buy gold, citing that wars are financed through borrowing and printing money, which devalues both debt and currency [4] - He emphasizes that during conflicts, gold serves as the "coin of the realm," as trust in credit systems diminishes [4] Group 3 - Dalio does not endorse Bitcoin or other cryptocurrencies as a hedge against geopolitical breakdown, instead highlighting gold's historical role as a trusted store of value during financial repression [5] - The recent surge in precious metal prices contrasts with the plummeting prices of risk-sensitive markets like crypto [6] Group 4 - The narrative of Bitcoin as "digital gold" is being tested due to its recent dramatic price falls, raising concerns about its status as a defensive store of value [7][8] - Dalio's perspective suggests that the conditions of great-power conflict make gold the default store of value, further challenging Bitcoin's position [8]

Ernest HoffmanErnest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service in the world and produced economic news videos in partnership with MSN and the TMX. He has a Bachelor's degree Specialization in ...