Ray Dalio is Really Scared Now, You Guys
The Bridgewater billionaire wants you to know that the sky is falling, and he’s serious this time.
BREAKING NEWS
Ray Dalio, the Bridgewater founder and Wall Street’s favorite catastrophizing auntie, is back with another warning of fiscal doom. Speaking to CNBC’s Sara Eisen from the CONVERGE LIVE confessional in Singapore, Dalio warned that the U.S. is running a debt Ponzi scheme that even your sketchiest crypto cousin would find unsustainable.
“The U.S. has to sell a quantity of debt the world is not going to want to buy,” Dalio said. Translation: We’re about to throw the world’s biggest bake sale, and nobody likes our cookies.
Dalio flagged the national debt (currently more than $36.2 trillion) as an “imminent” threat. Not the polite, hypothetical kind of imminent. The “it’s already in the house” kind. He says the U.S. needs to slash its deficit from 7.2% of GDP to 3%, or else brace for “shocking developments.” If that sounds like a horror movie trailer, well, that’s because it’s Ray, who’s been marketing various major market implosions for the better part of six decades.
And it gets better (worse?). Dalio floated scenarios like a U.S. debt restructuring (Wall Street’s version of “It’s not you, it’s me”), strong-arming foreign countries into buying more Treasurys (Canada, you up?), and potentially cutting off payments to some creditors (we’re ghosting you, China).
Ever the history buff, Dalio compared this mess to 1930s Germany what with tariffs, nationalism, protectionism, and all the fighting that comes with it. So, in his words, “there will be fighting.” Trade fighting. Currency fighting. Maybe even an awkward diplomatic silent treatment at the G7.
And yet, he swears he’s not an ideologue. Just your friendly mechanic diagnosing the world’s economy as one engine misfire away from catching fire… again.
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