Billionaire -investor Ray Galio has issued a grim warning about the process of the finances of the US government and describes the national debt situation as a critical point.
American debt near a ‘dangerous bending point’
On Monday, in a post on X, Dalio stated that the American federal debt was at a “very dangerous bending point”, and added that the nation now expressed 40% more than it took.
In a video clip in his message, with his recent performance on Fox News, Dalio compared the American credit system with a ‘blood circulation’ that maintains the economy. “It brings purchasing power to the entire economy,” he said.
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Although creating debts can be healthy when he is invested productively, he warned that decades for accumulation and increasing interest payments are now ‘tucking away in purchasing power’.
Dalio pointed out that the US is approaching a point where it may have to issue new debts to pay existing obligations, because the nation spends $ 7 trillion every year, with a “$ 5 trillion intake”, of which he said it was “a chronic problem”.
The US emphasizes the size of this problem, he said, the US is confronted with ‘a trillion dollar in interest’ and a ‘nine trillion dollar on debts’ that will soon become mature. In addition, Washington “will” increase “two trillion dollars of new loans, which brings the total to” $ 12 trillion “in new debt that the country has to offer.
The former hedge fund manager and founder of Bridgewater Associates The situation compared to hiding arteries and warning that if the current trends persist, the result can be a ‘economic heart attack’, especially if there are no buyers for such huge amounts of government debt.
‘Very, very dark times’ forward
A few weeks ago, Dalio had warned about “very, very dark times” and an uncertain future for large Western economies, including the United States and the United Kingdom, with reference to their non -durable debt levels.
Dalio said that the US played a ‘risky game’, with its increasing financial liabilities that drove the nation to a precarious future.
This is because the American national debt once reached a record high in August and hit $ 37 trillion, which adds $ 1 trillion to the figure every five months.
Earlier this year, president Donald Trump Approved The tax reduction and expenditure account of the Republicans, which, according to estimates of the Congressional Budget Office, will add $ 4.1 trillion to the national debt in the following decade.
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Photo with thanks to: PLA2NA on Shutterstock.com
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