When you reach the part of the cycle that you have to borrow money to pay debt service, and the holders of those bonds say it’s a risky situation — in the private debt market, we call that the debt death spiral,

Billionaire hedge fund manager Ray Dalio has a bearish outlook on the US economy, citing the escalating debt crisis as the Trump administration attempts to wrangle an annual deficit that topped $1.8 trillion in fiscal 2024 alone.

Ray Dalio, the billionaire founder of hedge fund Bridgewater Associates, has a warning for the Trump administration: commit right now to reducing the deficit or risk a major debt crisis within three years.

Billionaire investor Ray Dalio says the U.S. at the brink of ‘heart attack” in the form of a debt crisis. Read more here.

Bridgewater founder Ray Dalio compared the US debt to plaque building up in a heart, and said it was vital to act before the situation worsens.

When a borrower carries an overwhelming amount of debt, lenders begin to worry about repayment, increasing the risk of default. But according to Dalio, the U.S. is unlikely to default. The bigger threat? Depreciation of our currency.