Bridgewater founder Ray Dalio on Wednesday warned that a significant supply-demand problem regarding U.S. debt could have a profoundly disruptive impact on the global economy.
It is the latest in a series of stark warnings about America’s mounting debt from the U.S. hedge fund billionaire, with the country’s national debt currently standing at more than $36.2 trillion.
“The first thing is the debt issue, we have a very severe supply-demand problem,” Dalio told CNBC’s Sara Eisen at CONVERGE LIVE in Singapore. “[The U.S. has] to sell a quantity of debt that the world is not going to want to buy.”
He said this was imminent and of “paramount importance.”
The U.S. deficit needs to go from a projected level of 7.2% of gross domestic product to about 3% of GDP, Dalio said.
“That’s a big deal. You are going to see shocking developments in terms of how that’s going to be dealt with,” he added.
Asked whether the U.S. debt problem could lead to a…
