Dalio Warns UK Debt Crisis Risks Economic Decline

Ray Dalio, founder of Bridgewater Associates, has warned that the UK is trapped in a 'debt doom loop' as rising national debt, higher taxes, and sluggish economic growth threaten economic stability. Dalio points out that the top 10% of earners pay a majority of income tax, and government efforts to increase taxes risk driving these high earners away, potentially accelerating economic decline. He notes that the UK's deficit and borrowing costs are at historic highs, limiting fiscal options for Chancellor Rachel Reeves, who faces a significant budget shortfall. Dalio's concerns are echoed by other financial leaders. He recommends that individuals hold at least 15% of their assets in gold or bitcoin as protection against market turmoil and currency devaluation. Dalio urges a combination of spending cuts and tax increases, warning that failure to act could deepen social and economic problems.