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Ray Dalio continues to find new ways to talk about the increasing debt problem of America.
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The billionaire investor told a podcast that it was as if “on a boat was on his way to rocks.”
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He previously compared the rising debt with an ‘aggressive cancer’.
Ray Dalio fears that America is on its way to a debt crisis and continues to find more and more colorful ways to warn people about it.
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The American debt has tripled approximately $ 37 trillion in the last 20 years, and annual interest payments are now around $ 1 trillion.
In an episode of the podcast “Modern Wisdom” that was released this week, Dalio said that America’s debt headache is “as if you were on a boat on the way to stones.”
Although the politicians can see the danger, he said, they are “a fight about how to get” because they are worried about getting angry by raising taxes or reducing benefits. He summarized his frustration together with the status quo: “So politics.”
The founder of billionaire of Bridgewater Associates has been warning since at least 2018 for the dangers of debts when he published ‘principles for navigating major debt crises’.
In the book he argued that large amounts of loans inflate a bubble, which is followed by a contraction as soon as the debts are not to be taken. He points to the financial crisis a decade earlier and other debacles from the past, argued that a debt cycle follows a predictable progression as a ‘disease’.
At the end of 2022, Dalio told the Greenwich Economic Forum that debts, political division and foreign wars were a “perfect storm” for the country.
In February of this year he said that “debts accumulate like Plaque” in a financial system and could lead to a “heart attack” for the American economy in the form of the central government and the central bank that broke.
In his latest book ‘How Lands Go Broke’, Dalio wrote that ‘debt problems spread very quickly, as an aggressive cancer’.
He also said that the American fault is close to activating a death spiral in which the government has to borrow more to cover the interest on its debt, and the interest rates rise as keeping American dollars and treasurys riskier.
Many economists have warned that the interest payments of the government could grow so great that it should levy taxes or reduce social services to serve its debt.
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