Dubai, United Arab Emiraten – Hedgefonds Titan Ray Dalio gave a new warning about the American economy, warning of terrible consequences if the Trump government does not lower the fault of the country.
“It's like I was a doctor and I spoke with you about your condition, I would say to you, this is now very, very serious. These are all big problems,” Dalio told DailyExpertNewss than Murphy on the world government stop in Dubai. “What you have to do is reduce your deficit of about seven and a half percent of GDP to 3% of gross domestic product, and you can do that. There are certain things you can do that can be done in a certain way Reducing it “will make it much healthier, so the real problem is a political problem”.
The American gross national debt was around $ 36.22 trillion from 11 February, with $ 28.8 trillion thereof as a debt that the public has in the form of effects owned by persons, companies, state or local authorities, Federal Reserve Banks, foreign governments, and other entities outside the US government.
High debts means that the government spends more on interest payments and is more economically vulnerable in the case of future economic crises. It also leads to higher inflation and creates a burden for future generations.
“I want to warn people. I want to warn government officials,” said the founder of the billionaire Bridgewater Associates. “I want to help, you know, and so I feel like the doctor, and then I would say everyone, politics … If this doesn't happen, and we have the equivalent of, you know, an economic heart attack, or a heart attack of the bond market, then you know who is responsible because it can happen. “
“So it requires the same kind of discipline as if I would tell you, okay, you have to change how you eat, you have to change your training routine and you have to do these things.”
Dalio emphasized that governments are responsible and that leaders must make a promise to reduce the American budget deficit from 7.5% to 3% of GDP or resign.
When asked what his message was about the Trump government, Dalio replied:
“I think they recognize the problem, and then in the actions that are being taken, how do you save costs? How do you increase productivity? … Make sure you really know what you are doing and that you are practical and do it on … the conservative side, because you know, how much can it actually be?
Dalio also warned of debts in private credit and said that a “debt -red spiral shape is a part of the cycle, when the debtor has to borrow money to pay debt service, and accelerates, and then everyone sees that, and she doesn't want to” I want to hold the debt. “
Dalios Bridgewater Associates is one of the world's largest hedge funds. According to the US Securities & Exchange Commission, it had $ 171.7 billion in assets from September 2023.
