Ray Dalio Warns of Imminent U.S. Debt Crisis and Potential Global Economic Shocks

The billionaire investor highlights a severe supply-demand issue with U.S. debt, calling for drastic deficit reductions to avoid destabilizing consequences.

Ray Dalio has raised concerns about the U.S. federal debt surpassing $36 trillion, with a debt-to-GDP ratio now exceeding 122%.
Dalio warns that the U.S. faces a supply-demand imbalance, as global buyers may be unwilling to absorb the increasing debt issuance.
He advocates reducing the federal deficit from its projected 7.2% of GDP to 3% to stabilize the financial system and avoid economic shocks.
Dalio outlines potential solutions, including debt restructuring, political pressure on foreign buyers, or cutting payments to certain creditor nations.
Experts echo Dalio's concerns, noting that rising interest payments and diminishing foreign interest in U.S. debt could lead to unsustainable borrowing conditions.