Ray Dalio Warns U.S. Debt Surge, Warns Of Global And Domestic Conflict Ahead

Benzinga

Ray Dalio warned U.S. debt is rising unsustainably, comparing today’s conditions to the pre–WWII era. He urged tax hikes and spending cuts to defuse a “debt bomb,” saying rising inequality and global tensions risk deeper instability.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Bridgewater Associates founder Ray Dalio warned that U.S. government debt is rising too quickly,

00:06creating conditions similar to the pre-World War II era, according to Bloomberg.

00:10He said when debt grows faster than income, it squeezes out spending and risks destabilizing

00:14the economy. Dalio, who last month called the U.S. deficit a threat to the monetary order,

00:19played both political parties and urged tax increases and spending cuts to defuse the

00:23debt bomb. Public debt reached 99% of GDP last year and is projected to hit 160% by 2034.

00:30surpassing all historical records. Dalio also cited global conflicts and wealth inequality

00:35as worsening divisions that could lead to civil war of some sort. Dalio warned that growing

00:39conflicts will test opposing powers and said ignoring them will only increase future risks.

00:44For all things money, visit Benzinga.com.

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