Dubai, United Arab Emirates – The Titan Dalio Coverage Fund issued a new warning about the United States economy, warning about serious consequences if the Trump administration does not reduce the country’s debt.
“It’s as if I were a doctor and I was talking about your condition, I would tell you that it is now very, very serious. These are important problems, ”Dalio told Dan Murphy of CNBC at the top of world governments in Dubai. “What you should do is reduce its deficit of approximately 7.5% of 3% GDP of the gross domestic product, and can do it. There are certain things that you can do that they cut it in a certain way that they do it much healthier, so the real problem is a political problem. “
The Gross National Debt of US The Federal Reserve, foreign governments, and other entities outside the United States government.
High debt means that the government spends more on interest payments and is more economically vulnerable in case of future economic crises. It also leads to greater inflation and creates a burden for future generations.
“I want to alert people. I want to alert government officials, ”said billionaire Bridgewater Associates. “I want to help, you know, and so I feel like the doctor, and then I would say that everyone, politically … if this does not happen, and we have the equivalent of, you know, an economic heart attack or a heart attack of the market of Bonuses, then you know who is responsible, because it can happen. “
“Therefore, it requires the same type of discipline as if I told you, it is fine, you must change the way you eat, you must change your exercise routine and you need to do these things.”
Dalio emphasized that governments are responsible, and that leaders must commit to reduce the US budget deficit from 7.5% to 3% of their GDP or resign.
When asked what his message was for the Trump administration, Dalio replied:
“I think they recognize the problem, and then in the actions that are being taken, how is costs reduced? How does productivity rise? … Make sure you really know what you are doing and you are practical, and do it in … the conservative side, because you know, how much can the cut really be? We will see, and what are the consequences of the cut and each of those. So you better take a sharp and conservative pencil. “
Dalio also warned the debt in private credit, saying that a “spiral of debt death is that part of the cycle, when the debtor needs to borrow money to pay the debt service, and accelerates, and then everyone Come, and they don’t put ‘I want to keep the debt.
Bridgewater Associates of Dalio is one of the largest coverage funds in the world. He had $ 171.7 billion in assets under administration as of September 2023, according to the US stock and values commission.
