Silver Rises Over 120% YTD 
Published: 03-03-2025, 09:15 am | Updated: 03-03-2025, 08:53 am
Billionaire investor Ray Dalio is warning of a US debt crisis that could strike within “three years, give or take a year.” The Bridgewater Associates founder likens the situation to an approaching heart attack without a precise date.
During an Odd Lots podcast interview promoting his book “How Countries Go Broke,” Dalio urged the Trump administration to immediately cut the deficit to 3% of GDP while somehow maintaining their desired tax breaks.
Dalio’s alarm stems from analyzing historical debt patterns and today’s market, where he sees a dangerous mismatch between debt issuance and potential buyers. He points to an unprecedented situation where all three major Treasury buyers—foreign central banks, US banks, and the Federal Reserve—have simultaneously stepped back from the market.
With the annual deficit now at $1.8 trillion and constant new bond issuance needed to service existing debt, Dalio warns that ignoring these fiscal problems could trigger severe economic fallout and voter backlash. His warning deserves attention given his successful track record of navigating past financial crises through his understanding of long-term debt cycles.
