A millionaire warns that "something worse than a recession" might be on the horizon following the 2008 financial crisis prediction.

A storm has already been foreseen by billionaire Ray Dalio. After foreseeing the 2008 financial crisis, the founder of Bridgewater Associates, the largest hedge fund in the world, is now concerned that President Donald Trump’s tariff imposition will trigger “something worse than a recession.”

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Billionaire Ray Dalio on a potential recession History repeats itself: Ray Dalio

The 75-year-old billionaire investor remarked, “I think that right now we are at a decision-making point and very close to a recession,” during an insightful discussion on NBC’s Meet the Press last week. And if this is not managed properly, I fear something worse than a recession.

Billionaire Ray Dalio on a potential recession

The author of the book “How Countries Go Broke: The Big Cycle” then added, “A recession is two negative quarters of GDP and whether it goes slightly there. We always have those things. We have something that’s much more profound. We have a breaking down of the monetary order. We are going to change the monetary order because we cannot spend the amounts of money.”

We report Ray Dalio’s comments just after days after Trump insisted that trade talks with China are on behind the scenes even though the latter hasn’t indicated any signs to confirm the US president’s proclamations. Half-way through the month, it’s clear that April has been all about global stock markets being hit with a figurative wrecking ball as the US and China also continue their retaliatory tariff war.

History repeats itself: Ray Dalio

Mapping out a cyclic historical pattern, he continued shedding light on the “profound changes in our domestic order … and world order.” Redirecting focus to how history on this front “repeats over and over again,” he added, “If you take tariffs, if you take debt, if you take the rising power challenging existing power, if you take those factors and look at the factors, those changes in the orders, the systems, are very, very disruptive. How that’s handled could produce something that is much worse than a recession. Or it could be handled well.”

Congress members can handle the situation “very well,” according to the billionaire hedge fund manager, but if they don’t, the worst-case scenario would result in a “supply-demand problem for debt at the same time as we have these other problems.” He also cautiously discussed how “the value of money, internal conflict that is not the normal democracy as we know it, an international conflict in a way that is highly disruptive to the world economy and could even be a military conflict” could result in a situation that is “worse than a normal recession.”