Bridgewater AssociatesPrivate± Mixed
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Ray Dalio warns US debt crisis could hit in three years
MacroDigital Finance Impact 4
Billionaire investor Ray Dalio warned that the United States is heading for a major debt crisis, likening the nation to a person on the verge of a heart attack. In an August 21 LinkedIn post, the Bridgewater Associates founder cited a $4 billion U.S. debt buyback, rising bond yields, a weak dollar, and a Japanese sell-off of U.S. bond holdings as signs of a potential government debt crisis. Dalio estimated the U.S. will see around a $2 trillion budget shortfall this year with $11 trillion in debt service payments, and noted that U.S. debt topped $40 trillion for the first time earlier this month. He proposed cutting the budget deficit to 3% of GDP through spending cuts, lower interest rates, and higher tax revenue, while cautioning against forced adjustments like artificially low rates. Dalio predicted the crisis could come 'in three years, give or take two,' and advised diversifying assets, underweighting bonds, and holding 10% to 15% in gold plus a bit of Bitcoin.