Billionaire investor Ray Dalio recently expressed grave concerns over the escalating U.S. federal debt.
What Happened: Dalio shared his apprehensions at the World Government Summit in Dubai on Thursday. He drew a comparison between the burgeoning $36 trillion national debt and plaque clogging the arteries of the U.S. financial system.
Dalio foresees the possibility of an “economic heart attack” within the next three years if the issue is not promptly addressed.
Dalio predicts that if President Donald Trump‘s tax cuts persist, the U.S. will run a deficit of about 7.5% of GDP. He urged the White House and Congress to pledge to reduce the deficit to 3% of GDP within the next three years.
According to the report by Fortune, with the recent surge in inflation, bond investors may demand higher premiums to hold fixed-income securities such as sovereign debt. This could further strain the government spending…
