Ray Dalio: The global monetary order is collapsing.

➥ Fiat currencies and government debt are no longer functioning as reliable stores of wealth. Central banks no longer treat them the same way they once did.

➥ Gold was the strongest market last year, outperforming the tech sector. US markets lagged behind foreign markets, and this is evident in the actions and statistics of central banks.

➥ Behind trade wars and deficits lies a deeper process—wars for capital.

➥ Holders of US government bonds fear US actions, and the US itself fears dependence on foreign holders, even as the world holds vast amounts of dollars and government debt continues to grow.

➥ The problem is no longer isolated crises, but the very architecture of the fiat system. This is why capital is seeking alternatives, and states and markets are entering a phase of fierce competition for trust and liquidity.

Ray Dalio is a billionaire and the founder of the world's largest hedge fund, Bridgewater Associates.