New Delhi, Nov. 27 -- Billionaire hedge fund manager Ray Dalio has warned that a combination of inflated asset prices, excessive debt and widening wealth inequality is creating conditions for potentially severe economic, social and political unrest.

In a detailed post shared on X, the Bridgewater Associates founder drew a sharp distinction between "wealth" and "money", arguing that modern financial markets make it very easy to create paper wealth that may not be backed by real economic value.

Dalio said bubbles typically form when the value of financial assets such as equities rises much faster than the supply of money, fuelled largely by credit. "Wealth can't be spent, but money can," he wrote, explaining that trouble starts when inves...