Overview

• In an interview aired by Bloomberg and reported Friday, the Bridgewater founder said U.S. conflicts risk becoming “tests of power” unless the country coalesces around shared interests.
• Dalio warned that a high debt load could set off a “debt bomb” if buyers lose faith in U.S. fiscal discipline, pushing up borrowing costs or forcing painful budget cuts.
• He described overlapping financial, technology, geopolitical and military contests that he believes are intensifying domestic strains.
• A Gallup survey cited in the coverage found 80% of Americans viewed the nation as greatly divided, underscoring his concern about social cohesion.
• Dalio, who has a history of early risk calls, has urged a combination of tax increases and spending restraint to address what he calls a deficit-and-debt bomb.