Hedge fund founder warns US faces economic crisis without debt reduction
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.