Bridgewater Associates founder Ray Dalio discusses response to the U.S. debt on ‘The Claman Countdown.’
Congress formally handed President Donald Trump’s “big, beautiful bill,” and billionaire Ray Dalio is warning in regards to the doable financial penalties, which might embody spending cuts, main tax will increase and large cash printing.
“Unless this path is soon rectified to bring the budget deficit from roughly 7% of [gross domestic product] to about 3% by making adjustments to spending, taxes, and interest rates, big, painful disruptions will likely occur,” Dalio, the founding father of Bridgewater Associates, wrote in a publish on X Thursday.
Dalio stated the invoice, which now heads to the president’s desk to be signed into regulation, is predicted to lead to yearly deficits of $2 trillion with revenues of about $5 trillion exceeded by spending of about $7 trillion.
This deficit would enhance the nationwide debt over the subsequent decade, pushing the debt, at present the equal of about $230,000 per U.S. household, to about $425,000 per household, he warned.
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Ray Dalio, founder and CIO mentor of Bridgewater Associates, speaks onstage throughout The Wall Avenue Journal’s 2024 The Future Of All the pieces Pageant at Spring Studios Might 22, 2024, in New York Metropolis. (Dia Dipasupil/Getty Photos / Getty Photos)
Paying off this debt will even turn out to be more and more costly. Curiosity and principal funds on the debt would rise from round $10 trillion, $1 trillion of which is curiosity, to round $18 trillion, $2 trillion of which might be curiosity. This may lead to both spending being slashed, “unimaginable” tax will increase or a number of “printing and devaluing of money and pushing interest rates to unattractively low levels,” he stated.
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“This printing and devaluing is not good for those holding bonds as a storehold of wealth, and what’s bad for bonds and U.S. credit markets is bad for everyone, because the U.S. Treasury market is the backbone of all capital markets, which are the backbones of our economic and social conditions,” Dalio stated.
Speaker of the Home Mike Johnson, R-La., shakes palms with Home Majority Whip Tom Emmer, R-Minn., and Home Republican Convention Chair Lisa McClain, R-Mich., alongside different Home Republicans throughout an enrollment ceremony for the One, Large, Beautif (Kevin Dietsch/Getty Photos / Getty Photos)
Final month, Dalio equally sounded the alarm on America’s persistent spending on FOX Enterprise Community’s “The Claman Countdown,” saying the U.S. is headed for an “economic heart attack.”
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“We’re spending 40% more than we’re taking in, and this is a chronic problem,” he stated. “So, what you’re seeing is the debt service payments beginning to squeeze away, not beginning, well, into squeezing away. So, it’s like plaque in the arteries squeezing away buying power. And, as you can do the numbers, you will see that you can have an economic heart attack as a result of that.”
President Donald Trump pumps his fist as he boards Air Power One at Morristown Municipal Airport in Morristown, N.J., June 21, 2025. (Mandel Ngan/AFP through Getty Photos / Getty Photos)
On Thursday afternoon, Congress handed Trump’s “big, beautiful bill” after back-to-back sleepless periods for each the Home and Senate. The invoice, which advances Trump’s insurance policies on taxes, the border, protection, vitality and the nationwide debt, narrowly handed the Home of Representatives in a largely party-line vote.
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All however two Home Republicans, Thomas Massie, R-Ky., and Brian Fitzpatrick, R-Pa., voted for the invoice, which handed 218-214.
