Ray Dalio Warns US Debt Crisis Expected Within Three Years

Billionaire hedge fund manager Ray Dalio has warned of an imminent U.S. debt crisis, predicting a "debt-induced heart attack" within the next two to four years under President Donald Trump's administration. Dalio draws parallels between the current political and social climate and the 1930s-40s era, highlighting widening wealth and value gaps that fuel political extremism and weaken democracy. He criticizes the Trump administration's fiscal policies, particularly the growing federal deficit, with annual spending around $7 trillion outpacing revenues of $5 trillion, leading to unsustainable debt issuance. Dalio also points to risks to the U.S. dollar's stability from excessive borrowing and political pressure on the Federal Reserve to keep interest rates low, which could undermine confidence in dollar-denominated assets. He advises investors to consider hedging with assets like gold or Bitcoin as a response to currency debasement and fiscal instability. Overall, Dalio emphasizes the urgent need for policy changes to avoid severe economic consequences and a potential shift toward autocratic leadership.