Billionaire investor and founder of Bridgewater Associates Ray Dalio warns that the US election could cause chaos if the loser, especially Donald Trump, refuses to concede, resulting in a cutthroat all-or-nothing approach from both sides.

In a recent interview with the BBC, Dalio highlighted that many people from states such as California, New York, and New Jersey are likely to move to states like Florida and Texas, driven partly by tax considerations and partly by differing values.

“My great fear is for democracy,” Dalio told BBC.

In an interview with the Financial Times earlier this year, Dalio suggested that the chance of a civil conflict in the U.S. could be as high as 40%, reflecting his serious worries about the nation’s current state. He clarified that this civil war wouldn’t involve physical violence but rather an intensification of political polarization.

In this scenario, individuals would relocate to states that better align with their values and ignore federal decisions made by opposing political factions, as he explained to the Financial Times.

Check This Out: Ray Dalio: US ‘On The Brink’ Of Civil War, But Not One Where People’ Grab Guns And Start Shooting’

During a week marked by the televised debate between Kamala Harris and Donald Trump, Dalio expressed his deep concern for the future of democracy, regardless of the outcome on November 4.

“This reminds me of the 1930 to ’45 period in which there was an economic crisis followed by democracies becoming dictatorships,” Dalio told BBC. 

Dalio noted that Germany, Italy, Spain, and Japan experienced the breakdown of their parliamentary systems due to internal conflicts among the far left, far right, communism, and fascism, and he observed that modern versions of these issues are currently emerging.

According to a December Gallup survey, only 28% of US adults are currently satisfied with how democracy functions in the country, marking a new low compared to the previous low of 35% recorded shortly after the January 6, 2021, Capitol attack. Satisfaction levels vary significantly between political affiliations, with 38% of Democrats and just 17% of Republicans expressing contentment. Additionally, those with less formal education tend to be less satisfied with the state of democracy.

“I do not know how this election is going to turn out and how these things will turn out. I do know that we have an exceptionally high probability of instability”, Dalio informed the BBC.

Why Dalio’s Views Are Significant?

There is some indication that migration in the US based on personal values is already underway, as predicted by Dalio. For instance, in July, Elon Musk declared his decision to relocate the headquarters of his companies, X and SpaceX, from California to Texas, BBC added.

Musk cited new regulations in California that prohibit schools from informing parents if their children wish to change their gender identity as a key reason for the move.

Reflecting on his predictive track record, Dalio told the BBC, “I’ve been right in the markets about 65% of the time.”

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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