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Ray Dalio Warns U.S. Faces Debt Crisis Risk as Treasury Demand Wanes

He says substantial spending cuts are not feasible, shifting attention to revenue ideas as markets test the government’s borrowing limits.

Overview

  • Speaking in Singapore, the Bridgewater founder said $37.5 trillion in federal debt has created a crisis risk for the United States.
  • He warned that global appetite for new U.S. issuance is fading, creating a supply–demand imbalance that could push borrowing costs higher.
  • Dalio said Washington cannot realistically cut spending, even as interest costs have reached about $1.13 trillion so far this fiscal year.
  • Congressional Budget Office figures show roughly $7 trillion in 2025 outlays against $5 trillion in revenue, widening to $10.7 trillion versus $8.03 trillion by 2035.
  • He reported greater recognition inside the Trump administration after talks with Secretary Bessent, as officials float tariffs and $5 million 'Gold Cards' as potential revenue sources.