Hedge fund founder warns US faces economic crisis without debt reduction

foxnews.com February 4, 2025, 09:00 PM UTC

Ray Dalio, founder of the world's largest hedge fund, warned that the U.S. faces severe economic risks if national debt is not reduced. He described the current situation as a "death spiral" of debt, which could lead to an "economic heart attack." The U.S. national debt has surpassed $36 trillion, with a debt-to-GDP ratio of 125%. This ratio has increased significantly since the pandemic, as federal debt rose by 80% while GDP grew by only 38%. Dalio emphasized the need for bipartisan agreement to cut the deficit from 7.5% to 3% of GDP. He noted that achieving this will be politically challenging and could lead to significant job losses and economic turbulence.


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