Dalio Warns US Faces Crisis Worse Than Recession

Ray Dalio, founder of Bridgewater Associates, has issued a stark warning about the U.S. economy, stating that without careful handling of economic policies and tariffs by President Trump, the nation could face a situation worse than a recession. On NBC's Meet the Press, Dalio emphasized that the U.S. stands at a critical juncture, with deteriorating monetary order and excessive debt contributing to potential economic turmoil akin to the 1930s Great Depression. He highlighted the unsustainable level of U.S. debt, particularly with foreign creditors like China holding a significant share, and warned that these factors, combined with tariff issues, could lead to severe economic consequences. Dalio urged Congress to act by reducing the budget deficit to mitigate the risks of a supply-demand imbalance for debt. While he acknowledged the challenges, he also stated that proactive measures could help manage the situation. Ultimately, Dalio conveyed that the current economic landscape is complex and demands careful consideration of multiple risk factors.