Bridgewater Founder Says Biggest Threat to Europe is Populism

The great threat to the European Union is populism, according to Ray Dalio, billionaire founder and co-chief investment officer at Bridgewater Associates.
“If you look at Europe as a whole and you’re going to say what is the greatest threat to the European Union? It’s not the debt crisis. It’s not central bank policy. It is the movement of populism,” Dalio said Wednesday on CNBC’s “Squawk Box.”

During the past year, populism has fueled the U.K.’s Brexit vote to pull out of the European Union, Donald Trump’s surprise win in the United States and a defeat of Italy’s referendum for constitutional changes championed by then-Prime Minister Matteo Renzi.

It’s a phenomenon that Dalio thinks people will be hearing more of. For the first time, Dalio thinks politics are more important than central banking in influence.
Dalio, whose hedge fund manages manages about $160 billion in assets, recalled the similarities of today to the populism that existed in the 1930s. He noted that in the later years of that decade, the common man wanted to regain control after the recovery that followed the Great Depression. On the left, populism manifested itself as communism and socialism while on the right it led to fascism.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza