Bridgeweator founder Ray dalio On Wednsday Warned that a Significant Supply-Demand Problem Regarding Us Debt Could Have A Profoundly Disruptive Impact on the Global Economy.
It is the latest in a series of stark warnings about America’s mouting debt from the us hedege 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 us has) to sell a quantity of debt that world is not going to wast to buy.”
He said this was Imminent and of “Paramount importance.”
The US deficit needs to go from a projection 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 wheether the us debt problem could lead to a period of austerity, dalio said the issue could result in a restructuring of the debt, the us applying pressure Cutting off payments to some creditor count.
“Just as we are seen political and geopolitical shifts that seem unimaginable to most people, if you just look at history, you will see these things repeating over and Over Again,” Dalo Said. “We will be surprised by some of the developments that will see smoke, as that those destination developments that we have seen.”
His comments, made on the same panel as Salesforce Ceo Marc beNioffCOME AMID A Tariff roller coaster ride for markets in recent days,
Trade Policy Uncertainty has added to a sense of Unease on Wall Street, with Investors Concerned about The Impact of a Brewing Trade War on the Global Economy.
Presiding Donald Trump‘S trade policies, which appear designed to rebalance the economy in America’s favorite, include tarifs against against canada, mexico and china.
Tarifs ‘to cause fighting between countries’
When asked about the potential consortes of a simmering trade dispute, dalio described the current state of affairs as “an extension of the patterns of history” Example.
Dalio said there was a write-debt at that time, Alongside a hike in tarifs to boost revaneue and a buildup of its domestic base. “Be Nationalistic, Be Protectionistic, Be Militaristic. That is the way these things operate,” He said.
“The issue is really the conforted of all of this, the fighting of all of this. So, tariffs are going to cause fighting betteren countries,” dalio said, adding that he was not new Confrontation.
“But think about us, canada, mexico, China, and all of that types of fighting. There will be fighting, and that will have consequences, and I think that that’s the main thing to pay attation to,” He said.
Dalio said he was sharing during views as a politically neutral observer, Comparing His Approach to that of a Mechanic or Doctor. “I’m not an ideologue,” he added.