The national debt of the United States recently crossed the alarming threshold of 33 billion dollars.
The renowned investor Ray Dalio warned about the precarious tax situation of the United States, predicting an imminent debt crisis in the country. Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, recently shared its concerns during a fireside chat at the Managed Funds Association, reported on by The Moguldom Nation.
““We are going to have a debt crisis in this country.”, Dalio stated during his interview with CNBC’s Sara Eisen. He highlighted the critical role of supply and demand dynamics in determining the speed at which this crisis unfolds. He noted that he has been closely monitoring the situation as it evolves.
The national debt of the United States recently crossed the alarming threshold of 33 billion dollars.
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Why the US debt increased
The increase of the US debt was particularly pronounced in recent years, driven primarily by a substantial increase in federal spending between fiscal year 2019 and fiscal year 2021, according to the U.S. Treasury Department. Dalio’s concerns, however, go beyond the high debt levels. It contemplates the possibility of economic growth stagnating at levels close to zero.
“I think we’re going to have a deceleration of the economy,” Dalio said. He added that the United States is at the beginning of a “late-stage, large-cycle debt crisis.”
This would trigger a deceleration worrying for the American economy.
Dalio has often commented that the American economy, particularly its dependence on capitalism, needs to be renewed. “We are going to have a debt crisis in this country,” Dalio warned. “I think how quickly it happens will depend on that supply and demand issue, so I’m watching it very closely.”
Source: Ambito
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