A billionaire gives the US economy a dire warning

Ray Dalio says the country’s growth is in danger of going to zero.

Ray Dalio, who started the largest hedge fund in the world, Bridgewater Associates, says that the US economy is in a “risky” financial position that could lead to a debt crisis.

This month, the United States’ national debt went over $33 trillion. Before October 1, US lawmakers are working on a bill to spend money.

In an interview on Thursday on CNBC, Dalio said, “This country is going to have a debt crisis.” How fast it happens will depend on that supply-and-demand issue, so I am closely monitoring it.


The US Treasury Department says the country’s debt has gone through the roof recently, especially after government spending increased by about 50% between fiscal 2019 and 2021. Investors are worried that interest rates might increase as the situation worsens.

Dalio has warned that the economy could face more problems than high debt levels and that growth could even stop. “I think the economy is going to slow down in a big way,” the investor said.

This year, the US avoided a historic default when President Joe Biden signed a bill to suspend the debt limit of $31.4 trillion two days before the deadline in June. The debt limit has been raised until January 1, 2025.

Analysts have said that the fact that the US was close to being unable to pay back its colossal debt could hurt the country’s financial image.

In August, Fitch cut the United States’ credit rating, saying that the country’s finances would worsen over the next three years and that there would be more talks about raising the debt limit. Moody’s warned earlier this week that a possible government shutdown on October 1 would hurt the country’s credit ranking.


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