— weighed in on the discussion by offering historical anecdotes, potential next steps, and reasons why this development shouldn't be taken lightly.
To that end, Dalio thinks that President Trump may lean on the International Emergency Economic Powers Act in order further restrict the Chinese economy. Referencing this contested period from 1935 to 1945, Dalio thinks these most recent developments are akin to "the most logical steps in this classic dangerous journey."
Today, we're in that same spot. Income inequality and political extremes are present and growing, the Federal Reserve is running out of tools to stimulate the economy, and China is starting to challenge the US' status as the de facto world power.
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