Ray Dalio Warns U.S. Debt Crisis Could Lead to 'Shocking Developments'

The billionaire investor highlights a growing supply-demand imbalance in U.S. debt markets and urges significant fiscal adjustments.

Ray Dalio, founder of Bridgewater Associates, warns that the U.S. faces an imminent debt crisis due to an unsustainable debt-to-GDP ratio of 122%.
Dalio emphasizes that the federal government will need to sell more debt than global markets are willing to absorb, creating a severe supply-demand imbalance.
He suggests reducing the U.S. budget deficit from 7.2% of GDP to 3% through spending cuts, tax adjustments, and interest rate management.
Experts, including Dalio, express concerns that foreign buyers, once key purchasers of U.S. debt, are now retreating or demanding higher interest rates.
Dalio predicts 'shocking developments' in how the U.S. may address the crisis, potentially involving debt restructuring, political pressure on buyers, or payment reductions to certain nations.