‘Economic heart attack’: Ray Dalio raises concerns about US debt
Ray Dalio, the head of the world’s largest hedge fund, has forecasted that the US economy is headed for an ‘economic heart attack.’ Read Full Article at RT.com.
TroibNews 
The nation's economy faces significant financial challenges in the coming years, according to Ray Dalio, a billionaire investor and founder of Bridgewater Associates, who spoke with Bloomberg on Monday. He emphasized the urgent need for Washington to commit to reducing the deficit to avert a major debt crisis within three years. This warning follows the alarming rise of the US federal budget deficit, which reached $1.8 trillion in the last fiscal year, ending September 30, 2024.
This figure represents the third-highest federal deficit in the history of the US, trailing only the pandemic-related deficits of $3.132 trillion and $2.772 trillion recorded in 2020 and 2021, respectively. For context, France's GDP was approximately $3 trillion in 2023.
Dalio stated, “If you don’t do it, you’re going to be in trouble,” during an episode of the outlet’s weekly ‘Odd Lots’ podcast.
He continued, “I can’t tell you exactly when it’ll come, it’s like the heart attack. You’re getting closer, my guess would be three years, give or take a year, something like that.”
The investor expressed confidence that there is a “doable” solution to tackle the government deficit and the looming debt crisis. The current US national debt stands at $36.2 trillion, a threshold surpassed for the first time last summer.
His remarks arrive as the administration led by President Donald Trump is pursuing a substantial tax cut bill that also encompasses funding for increased defense and immigration enforcement.
Recently, the US House of Representatives narrowly approved a budget framework aimed at cutting as much as $2 trillion in spending while permitting up to $4.5 trillion in tax reductions over the next decade. This budget proposal also seeks to elevate the statutory debt limit by $4 trillion.
Dalio projected that the anticipated deficit will account for about 7.5% of the country’s gross domestic product once Trump’s tax cuts are implemented. He urged that this figure be reduced to 3%, asserting that doing so would “mean that debts won’t rise relative to incomes, and it will greatly improve supply and demand.”
Sophie Wagner for TROIB News
This figure represents the third-highest federal deficit in the history of the US, trailing only the pandemic-related deficits of $3.132 trillion and $2.772 trillion recorded in 2020 and 2021, respectively. For context, France's GDP was approximately $3 trillion in 2023.
Dalio stated, “If you don’t do it, you’re going to be in trouble,” during an episode of the outlet’s weekly ‘Odd Lots’ podcast.
He continued, “I can’t tell you exactly when it’ll come, it’s like the heart attack. You’re getting closer, my guess would be three years, give or take a year, something like that.”
The investor expressed confidence that there is a “doable” solution to tackle the government deficit and the looming debt crisis. The current US national debt stands at $36.2 trillion, a threshold surpassed for the first time last summer.
His remarks arrive as the administration led by President Donald Trump is pursuing a substantial tax cut bill that also encompasses funding for increased defense and immigration enforcement.
Recently, the US House of Representatives narrowly approved a budget framework aimed at cutting as much as $2 trillion in spending while permitting up to $4.5 trillion in tax reductions over the next decade. This budget proposal also seeks to elevate the statutory debt limit by $4 trillion.
Dalio projected that the anticipated deficit will account for about 7.5% of the country’s gross domestic product once Trump’s tax cuts are implemented. He urged that this figure be reduced to 3%, asserting that doing so would “mean that debts won’t rise relative to incomes, and it will greatly improve supply and demand.”
Sophie Wagner for TROIB News
