Billionaire Sounds Alarm on U.S. Debt and Interest Rates
Bridgewater Associates founder Ray Dalio has issued a stark warning about the growing debt crisis in the United States, suggesting that policymakers will be forced to resort to monetary easing as debt costs surge.
Dalio said the U.S. is nearing a point where rising deficits and ballooning debt service costs will leave the government with few options. The likely response, he argued, will be to cut interest rates and increase money printing — measures he called predictable but ultimately insufficient to fix the root problem.
According to Dalio, America’s fiscal trajectory is unsustainable without bipartisan cooperation on both spending cuts and tax hikes. Without this balance, he cautions, demand for U.S. debt may fail to keep pace with supply, leading to greater instability.
Dalio also referenced his essay “How Countries Go Broke,” outlining a scenario where unchecked debt growth eventually forces governments to act — often too late. He emphasized that both Democrats and Republicans acknowledge the need for a shared solution but lack the political will to implement one.
Without decisive action, he warned, the U.S. risks drifting toward a debt-driven crisis that will challenge both markets and the broader economy.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
