Ray Dalio, founder of Bridgewater Associates and a prominent figure in global finance, has issued a stark warning about the U.S. economy. In his new book, “How Countries Go Broke: The Big Cycle,” Dalio highlights the dangers posed by the country’s mounting debt levels. He likens the situation to an “economic heart attack,” emphasizing the risks of prolonged debt cycles. According to Dalio, the U.S. government faces a significant deficit, with expenditures far exceeding revenues. The national debt has reached approximately $30 trillion, and interest payments alone consume a substantial portion of federal income. Dalio proposes a three-pronged solution to address the issue: cutting public spending, increasing fiscal revenues, and reducing interest rates. He stresses the importance of balancing these measures to avoid severe economic disruptions. His analysis draws on historical data and cyclical patterns, offering a detailed framework for understanding debt crises.
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