During a Thursday broadcast of CNBC’s “Squawk Box,” legendary hedge funder Raymond Dalio voiced a concern that both TheBlaze and Zero Hedge have raised in the past, namely, that global economic instability and desperation may lead to the rise of very frightening regimes.
“I don’t know whether we’re beyond the point of being able to successfully manage this,” the Bridgewater Associates founder said, referring to the global economic crisis.
“When people get at each other’s throat, the rich and the poor and the left and the right and so on, and you have a basic breakdown, that becomes very threatening,” he continued.
“For example, Hitler came to power in 1933, which was the depth of the Great Depression, because of the social tension between the factions. So I think it very much is dependent on how the people work this through together and worry about the social elements,” he added.
As reported yesterday on TheBlaze, some of what Dalio mentioned is already taking place. Consider, for example, the fact that Greece’s neo-Nazi party, Golden Dawn, has risen 10 points in popularity since May:
“[T]he popularity of Golden Dawn’s leader Nikos Mihalolioakos has risen ten points since May to an incredible 22%. More than 1 in 5 Greeks now support the neo-nazi party as the general disillusionment with mainstream political parties — who are seen as lying to get votes — grows stronger,” writers at Zero Hedge note.
Record high unemployment rates, crushing debt, revolving leadership — is it a surprise the Greek people have become desperate enough to give a radical party a second look?
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Front page photo courtesy the AP. This post has been updated.