On a spectrum of opinion about America’s national debt, Ray Dalio comes down on the end of “crisis.”
The Bridgewater Associates founder has long warned America’s fiscal trajectory is on a dangerous path owing to its $37.5 trillion national debt—with additional interest payments of $1.13 trillion for the 2025 fiscal year to date.
But Dalio, speaking at the Future China Global Forum in Singapore this week, doesn’t think the U.S. is in a position to pull back on its spending.
Economists aren’t concerned about the amount of U.S. national debt per se, more its debt-to-GDP ratio. If a country is borrowing at a rate which outpaces its growth, then investors at some point will begin to question the security of the returns on the debt they are holding.
This could either result in investors backing out of purchasing the debt, or demanding higher interest payments to offset the risk. Of course, a nation’s central…
