Ray Dalio warns the world is ‘on the brink' of a capital war

• The world is 'quite close' to and could easily go 'over the brink' into a capital war.
• Mutual fears exist, such as European holders of US-denominated assets fearing sanctions, and the US fearing not getting capital or buyers.
• Capital and money matter in global power dynamics, as money buys military equipment and the strength/willingness to use reserve currencies as leverage is increasing.
• Capital controls and capital war are already taking place globally, raising questions about who will be most affected.

Ray Dalio warns that the world is on the 'brink' of a capital war, driven by mutual fears among nations regarding the use of financial leverage and sanctions. He highlights that money and capital controls are becoming critical tools in geopolitical conflicts, drawing parallels to historical events like the Suez crisis.