Ray Dalio Says World Order Is Breaking Down — What It Means for Crypto

Billionaire investor Ray Dalio says the post‑World War II global order is breaking down and that the world has entered “Stage 6” of what he calls the Big Cycle, a late phase marked by rising great‑power conflict. He argues international affairs are ultimately governed by power rather than enforceable rules, so tensions grow when a dominant country weakens and a rival gains strength.

Dalio outlines five escalating forms of conflict that typically appear in such periods: trade and economic wars, technology wars, capital wars involving sanctions and financial restrictions, geopolitical struggles over alliances and territory, and finally military wars.

He draws comparisons to the 1930s, noting that tariff battles, asset freezes, embargoes and financial restrictions often precede open conflict. He points to the U.S.–China strategic rivalry, particularly over Taiwan, as the most significant flashpoint and warns the choice between fighting and backing down is costly for both sides.

United States, China, Taiwan

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