Ray Dalio Warns of Economic Risks from U.S. Debt and Fed Policies

The billionaire investor highlights the challenges posed by high debt levels, political divisions, and global tensions.

The U.S. Federal Reserve's recent interest rate cut to 4.75%-5% aims to balance creditor and debtor interests amid rising national debt.
Dalio expresses concern over the $1 trillion spent on interest payments for the U.S.'s $35.3 trillion national debt and the increasing budget deficit.
He predicts a depreciation in the value of debt through low real rates and potential central bank intervention, similar to Japan's monetary policies.
Geopolitical tensions, particularly between the U.S. and China, and internal political divisions in the U.S. are highlighted as significant risks.
Dalio also emphasizes the transformative impact of technology and the increasing costs of climate change as major factors influencing the global economy.