Billionaire Investor Ray Dalio Warns of US Fiscal Crisis, Predicts Shift to alternative Assets
BEIJING – billionaire hedge fund founder Ray Dalio cautioned that teh United States’ escalating debt levels are “unsustainable” and pose a important risk to the global monetary system. Speaking at the futurechina Global Forum 2025, Dalio, of Bridgewater Associates, warned a fiscal crisis could be triggered by the nation’s spending habits.
Dalio highlighted the scale of the problem, stating U.S.debt is currently approximately six times the country’s annual revenue. He estimates the government will require an additional $12 trillion in borrowing to address a $2 trillion deficit, $1 trillion in interest payments, and $9 trillion in maturing debt.
The investor expressed concern that global markets may lack the capacity to absorb this level of debt, creating a supply-demand imbalance. He also noted that President Donald Trump‘s tax and spending plans are projected to add another $3.4 trillion to the national debt over the next decade.
According to Dalio,persistent excessive borrowing without corresponding spending cuts erodes confidence in fiat currencies,perhaps driving investors towards safe-haven assets like gold and alternative currencies.
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