Billionaire hedge fund boss Ray Dalio has said that the United States has slid into stagflation for the first time since the early 1980s.  Dalio, who founded the Bridgewater Associates hedge fund and is famed for correctly predicting the 2008 financial crisis.

Stagflation is a toxic combination of stagnant economic growth, high inflation, and high unemployment. It last gripped the US in the 1970s and early 1980s, when an OPEC oil embargo sent energy prices spiraling. It took the US Federal Reserve a series of brutal rate hikes – pushing borrowing costs above 20% – to finally break the cycle, at the cost of a severe downturn. –RT

“We are certainly in a stagflationary period,” Dalio said. He also warned the U.S. Federal Reserve against cutting interest rates at this point, arguing that “you will lose your credibility.”

The Federal Reserve responded to Dalio’s assessment, claiming that it “overstates” the problems caused by the Iran war. Dalio added that the war is causing a breakdown of the global order, adding that it is a “problem” for the US, as the world is watching to see if it has the will for a sustained military campaign and is able to meet its key goals.

But JD Vance claimed that the U.S. has already met its goals in Iran. So what’s the point of a continued war then?

JD Vance Says “We’ve Accomplished Our Objectives” In Iran

“The more checks that are missing, particularly who controls the Strait of Hormuz, has big implications. Not only there… it has implications all around the world. So, when you’re thinking about, let’s say, the Strait of Malacca, who controls that? And is it good as a benefit or not a benefit to have a military base in your country?… Those analogous questions are being looked at by people around,” Dalio said.

Dalio has also warned that the U.S. is in a “debt death spiral.”  Within several years, this spiral could be triggered by unsustainable interest payments and a falling demand for U.S. assets.