Ray Dalio’s warning about the future of global economies is impossible to ignore. The billionaire investor, founder of Bridgewater Associates, has long been concerned about the trajectory of the world’s finances. Now, with rising debt levels threatening economic stability, Dalio is urging investors to prioritize “hard money” like gold while steering clear of debt assets.
At Abu Dhabi Finance Week, Dalio addressed the unsustainable debt levels in major economies like the U.S. and China. He made it clear: “It is impossible for these countries to be able to not have a debt crisis in the years ahead that will lead to a great decline of [money] value.” The implications of his message are chilling.
The U.S. national debt has skyrocketed to over $36 trillion. In the last 105 days alone, the debt has increased by an average of $9.5 billion per day. This is no small issue—this pace is unsustainable. The U.S. debt-to-GDP ratio is a staggering 336%, far beyond the 110% average for advanced economies just over a decade ago. This debt bomb is ticking, and the consequences are frighteningly close.
Dalio’s warning doesn’t just rest on the numbers; it’s driven by the rapid rise in debt levels. The U.S. federal debt has increased by $1 trillion in just over three months. This isn’t just an economic problem; it’s a looming crisis. If the U.S. and other nations continue on this trajectory, a massive collapse in fiat currencies seems inevitable.
His solution? Gold and Bitcoin—assets he views as stable in a time of growing instability. Gold has long been a safe haven during economic turbulence, and Bitcoin, with its fixed supply, offers a modern hedge against the decline of traditional money. Dalio’s investment advice reflects his deep concern over the future of fiat currencies, which are increasingly vulnerable to devaluation.
Sources:
https://www.foxnews.com/us/ray-dalio-warns-invest-hard-money-gold-bitcoin
https://www.dailywire.com/news/ray-dalio-prefers-hard-money-gold-bitcoin-over-debt-assets
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