Ray Dalio Warns of Unsustainable US Debt Crisis

The $38 Trillion Debt Burden

Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund, has issued a stark warning about the growing US national debt, now exceeding $38 trillion. In a recent interview on David Rubenstein's show, Dalio emphasized that this massive debt will ultimately be borne by future generations through the devaluation of the US dollar.

Impact on Future Generations

Dalio pointed out that his own children, grandchildren, and even those not yet born will end up paying for this debt through inflation, as the value of the dollar erodes over time. He stressed that the current fiscal policy direction is unsustainable and that historical precedents show countries with excessive debt rarely resolve their problems through straightforward measures like spending cuts or outright default.

Historical Context and Warning Signs

As someone known for studying the history of global financial cycles, Dalio highlighted that the US is following a well-worn path of nations that have struggled with high debt levels. He emphasized that the burden will likely be shifted to future generations through currency devaluation rather than direct repayment.