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

In a recent interview with the BBC, Dalio stressed that many people from states like California, New York and New Jersey are likely to move to states like Florida and Texas, partly for tax reasons and partly because of different values.

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

In an interview with the Financial Times earlier this year, Dalio suggested that the chance of a civil war in the US could be as high as 40%, reflecting his grave concerns about the current state of the country. He clarified that this civil war would not involve physical violence, but rather an intensification of political polarization.

In this scenario, people would move to states that better align with their values ​​and ignore federal decisions made by opposing political groups, he explained to the Financial Times.

Check this out: Ray Dalio: US ‘on brink’ of civil war, but not a war where people pick up guns and start shooting

During a week dominated by the television debate between Kamala Harris And Donald TrumpDalio expressed his deep concern about the future of democracy, regardless of the outcome on November 4.

“This reminds me of the period from 1930 to 1945, when there was an economic crisis, after which democracies turned into dictatorships,” Dalio told the BBC.

Dalio noted that Germany, Italy, Spain and Japan have faced a collapse of their parliamentary systems due to internal conflicts between the far left, the far right, communism and fascism. He noted that modern versions of these issues are currently emerging.

According to a December Gallup poll, only 28% of American adults are currently satisfied with how democracy is functioning in the country, a new low compared to the previous low of 35% recorded shortly after the attack on the Capitol on January 6, 2021. Satisfaction levels vary significantly across political affiliations, with 38% of Democrats and only 17% of Republicans expressing satisfaction. Additionally, people with less formal education tend to be less satisfied with the state of democracy.

“I don’t know how these elections are going to go and how these things are going to go, but I do know that we have an exceptionally high risk of instability,” Dalio told the BBC.

Why are Dalio’s views important?

There are indications that migration in the US based on personal values ​​is already happening, as Dalio predicted. For example, in July, Elon Musk announced his decision to move the headquarters of his companies, X and SpaceX, from California to Texas, according to the BBC.

Musk cited new California rules that prohibit schools from informing parents if their children want to change their gender identity as the main reason for the measure.

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

Disclaimer: This content is produced in part using AI tools and was reviewed and published by Benzinga’s editors.

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