New Delhi — Veteran investor Ray Dalio has warned that the United States is entering a particularly risky period because of widening fiscal deficits, rising debt and weaker demand for U.S. government bonds.
The Bridgewater Associates founder said the risk is especially high between the 2026 midterm elections and the 2028 presidential election.
“I believe we are currently on the brink,” Dalio wrote on X, adding that the monetary situation was “becoming increasingly threatening.”
Dalio said the United States currently spends about $7 trillion a year while collecting roughly $5 trillion in revenue, creating what he described as “40 per cent overspending.”
He said Washington has a large amount of debt to finance, but “the demand for that debt is falling” because of “standard supply and demand factors, as well as fears from debt holders regarding potential sanctions.”
Dalio has repeatedly warned that the 2026-28 period could be risky for the U.S. economy, saying the country’s fiscal path may force policymakers to consider unconventional responses.
At an event in early June, Dalio reportedly intensified his warning, saying the United States has moved “past the point of no return” on its debt trajectory. He suggested that a 1930s-style policy of financial repression, in which the Federal Reserve and Treasury coordinate to suppress yields, has become a plausible outcome, according to multiple reports.
Annual interest payments on the U.S. national debt are projected by the Congressional Budget Office to exceed $1 trillion in 2026. The total national debt is currently nearly $39.2 trillion, up from about $28.5 trillion five years ago.
Dalio also said in 2025 that the United States is locked in a broader competition with China and its allies that could shape the future of the world.
“The US and China are in a technology competition. The others are not really in the game. The winner of the technology war will win all wars, including economic war and geopolitical war,” Dalio said. (Source: IANS)
