Ray Dalio Warns Against Decreasing Value Of US Dollar Amid Mounting Government Debt: 'Risks Are Greater Than The Rating Agencies Are Conveying'

Billionaire Ray Dalio warned that U.S. credit rating agencies are understating the risks tied to rising government debt, according to a post on X. The founder of Bridgewater Associates argued that the real danger lies not in default but in the erosion of the dollar's value due to money printing. Dalio warned that printing money to repay debt poses greater risks than credit ratings suggest, as it can trigger inflation and weaken the domestic currency. He emphasized that bondholders risk losses from inflation driven by declining currency value, making U.S. government debt riskier than credit ratings indicate.