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TIMESOFINDIA.COMGold prices in US Gold second largest reserve currency: Billionaire hedge fund manager and the founder of Bridgewater Associates Ray Dalio has warned that global currencies may be heading for a crisis, drawing parallels to the economic turmoil of the 1930s and 1970s, as per a report.Gold becomes second-largest reserve currency after US dollarIn a post on social media X, the Bridgewater Associates founder, wrote that, “Gold is now the second largest reserve currency, behind the US dollar,” emphasizing a major shift in the global monetary order," as quoted in a Benzinga report.Fiat money faces devaluation like 1930s and 1970s, says Ray DalioDalio explained that history shows a clear pattern of fiat currency devaluation. He compared the current situation to the Nixon shock of the 1970s and the Great Depression of the 1930s, when all major currencies lost value against hard assets like gold.He said, "we're currently facing a classic currency devaluation similar to what we saw in the 1970s or the 1930s,” which referred to the Nixon shock and the Great Depression, during which all currencies went down relative to hard currencies such as gold, as reported by Benzinga.Dalio shared a clip from his appearance on 'The Master Investor Podcast', where he argued that gold’s rising importance as a reserve puts it ahead of other major currencies, as per the report. He pointed out that, “If events today follow a similar pattern, that makes hard currencies an attractive asset to hold," as quoted by Benzinga.Live EventsALSO READ: Ethereum could soar to $15,000, says Tom Lee — even after its latest price dip“Very dark times” ahead for US and UKEarlier this week, in another podcast with Steven Bartlett, Dalio warned of “very, very dark times” ahead for the United States and United Kingdom, pointing to the growing financial liabilities weighing on both economies, as reported by Benzinga.US economy's “debt-induced heart attack” warningPreviously this month, he has also cautioned about a “debt-induced heart attack” for the US economy in the “relatively near future,” which he says was caused by many years of big deficit, as per the report.ALSO READ: Assata Shakur, political activist & FBI's first most-wanted female, dies at 78 in CubaAmerica’s $37.5 trillion debt could spark a financial crisisLast week, at the Future China Global Forum in Singapore, Dalio highlighted America’s $37.5 trillion debt, warning it could spark a crisis, as per the Benzinga report. He added that trillion-dollar annual interest payments are reducing demand for US debt, creating supply and demand imbalances, according to the report.Recent data shows US federal government interest payments have already hit a record $1.2 trillion over the past year. Market observers now warn that figure could climb to $1.4 trillion by 2026 if the country’s fiscal path worsens, as per the Benzinga report.FAQsWhat is Ray Dalio warning about?He warns global currencies may face a crisis similar to the 1930s and 1970s, as per the Benzinga report.What role does gold play in his outlook?Dalio says gold is now the second-largest reserve currency after the US dollar, as per the Benzinga report.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onGold second largest reserve currencyglobal currencies crisisgold reserve currencyGold priceRay Dalio currency warningRay Dalio gold reserve predictionGold vs fiat currencies 2025U.S. debt crisis $37.5 trillionGold news todayUS Dollar 2025 (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onGold second largest reserve currencyglobal currencies crisisgold reserve currencyGold priceRay Dalio currency warningRay Dalio gold reserve predictionGold vs fiat currencies 2025U.S. debt crisis $37.5 trillionGold news todayUS Dollar 2025(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless
