Ray Dalio's Recent Warnings on Economic Risks (as of February 17, 2026)Ray Dalio, founder of Bridgewater Associates, has issued stark cautions in early February 2026 about systemic threats to global markets and the U.S. economy!
Speaking at the World Governments Summit in Dubai (Feb 2) and in interviews/essays, he highlights recurring historical patterns rather than predicting an immediate crash.Key Factors from His Statements:
Capital War on the Brink: Geopolitical tensions could weaponize finance (sanctions, capital controls, asset freezes), disrupting global capital flows and raising borrowing costs sharply. This risks freezing markets, especially debt-fueled sectors like the AI boom.
Unsustainable Debt Levels: U.S. national debt exceeds $38 trillion; interest payments now rival defense spending. Excessive borrowing/printing leads to currency devaluation, inflation, and potential "economic heart attack" or debt crisis worse than recession.
Bubble Risks & Valuations: AI sector shows early bubble signs with unsustainable valuations. Wealth-to-money ratios echo pre-1929 and 2000 peaks, risking forced sales and evaporation of perceived wealth.
Monetary & Geopolitical Order Breaking Down: Fiat systems face erosion; empires historically print money when debts overwhelm, causing inflation, declining living standards, political extremism, and conflict.
Historical Cycle View: We're in late stages of his "Big Cycle" (debt buildup, internal/external conflicts). No easy fix—options include printing (devaluation) or crisis/default.
Dalio advises hedging via gold over debt assets, diversification, and preparation without panic.
Markets remain resilient so far, but his warnings underscore rising debt, geopolitics, and valuation fragilities as major risks in 2026!