"The End of the World Order"... Ray Dalio warns of "the law of the jungle" and the return of superpower conflicts
By Palestinian – In one of the most revealing moments for the geopolitical future since the end of World War II, the Munich Security Conference came out with a shocking message agreed upon by world leaders: “The world order as we know it is over.” Renowned American investor Ray Dalio saw this radical shift as conclusive evidence that humanity has entered the most dangerous “sixth stage” in its grand historical cycle: a stage marked by the absence of international law and the return of the logic of “pure power.”
Death announcement from Munich
Dalyou based his analysis on statements that were unprecedented in their frankness, with German Chancellor Friedrich Merz announcing the fall of the old world order and French President Emmanuel Macron calling on Europe to prepare for a war scenario. On the other side of the Atlantic, US Secretary of State Marco Rubio asserted that the world had entered a completely new geopolitical era, transcending the rules established after 1945.
For Daliu, these statements are not mere diplomatic maneuvers, but rather a "historic sign" confirming the transition to a phase of chaos, where international institutions are eroded and the balance of military and economic power becomes the sole reference for resolving conflicts.
Forest law and the impotence of international organizations
Daly explains that the international system has always been a “fragile structure” lacking real executive power (effective international police and judiciary). As conflict escalates, countries quickly revert to the “law of the jungle,” where there is no place for legal arbitration, but rather a language of threats, bargaining, and mutual deterrence prevails.
Dallio believes that today's international conflict is taking shape in five overlapping arenas:
- Trade wars: imposing tariffs and restrictions.
- Technology wars: The race for artificial intelligence and chips.
- Capital wars: sanctions and asset freezes.
- Geopolitical conflicts: spheres of influence and alliances.
- Military wars: direct confrontation or proxy wars.
Taiwan: The existential clash and lessons from history
Daly warns that major wars do not break out suddenly, but are preceded by years of financial and technological confrontations, which he sees happening today in the US-China conflict over Taiwan, describing it as "an existential clash between two converging powers."
Dalyou recalls a recurring historical lesson: "Long periods of prosperity always pave the way for bloody clashes." When some countries grow stronger and others weaker, the old order becomes incapable of containing new ambitions. He also warned against “stupid wars” that could erupt due to populist escalation or misunderstanding, setting forth a golden rule: “Possess power, respect power, and use it wisely.”
War economy: Gold is the last resort
In a bleak economic reading, Dalio recalls how the Great Depression paved the way for the rise of populism and then World War II. He points out that economies at war undergo radical transformations, including:
- Strict restrictions on capital movements and prices.
- All spending shifted toward military mobilization.
- Debt losing its value as a result of excessive "money printing."
- The emergence of gold as the sole and reliable asset for exchange.
A new system written in blood?
Daliu concludes that all great powers are subject to a cycle (rise, peak, decline). While some countries withdraw quietly, others choose confrontation to redraw the map. He believes that the system established in 1945 has breathed its last breath, and that the world now faces two choices: either rational compromises that preserve balance, or a costly war that reengineers the world by force and writes the rules of the new system in blood.