Overview
- Ray Dalio, founder of Bridgewater Associates, cautions that the US economy could face an 'economic heart attack' within three years due to escalating debt levels.
- The US deficit reached $1.8 trillion in fiscal 2024, with government spending outpacing revenues by nearly $2 trillion, according to the Treasury Department.
- Dalio suggests lowering the deficit to 3% of GDP through a combination of spending cuts and tax adjustments to prevent a worsening debt cycle.
- He compares the current situation to past crises, including the 1970s stagflation and the Great Depression, warning of potential spikes in interest rates and currency depreciation.
- The US national debt now stands at $36.2 trillion, having more than tripled since 2000, raising concerns about long-term economic stability.