Founder of Bridgewater Associates Ray Dalio discusses the reaction to the American debt to ‘The Claman Countdown’.
Congress has officially passed on president Donald Trump’s “Big, nice account”, and billionaire Ray Dalio warns of the possible economic consequences, including the issuing of austerity, large tax increases and massive money prints.
“Unless this path is quickly remedied to bring the budget deficit of approximately 7% of it [gross domestic product] Up to about 3% by making adjustments to expenditure, taxes and interest rates, large, painful disruptions will probably occur, “wrote Dalio, the founder of Bridgewater Associates, in a post on X Thursday.
Dalio said that the bill, which is now going to the President’s office to sign in the law, is expected to result in annual $ 2 trillion deficits with a turnover of approximately $ 5 trillion exceeded by spending around $ 7 trillion.
This deficit would increase the national debt in the following decade, making the debt, currently the equivalent of around $ 230,000 per American family, to around $ 425,000 per family, he warned.
America went on its way to ‘economic heart attack’ to the government debt and warns billionaires
Ray Dalio, founder and CIO Mentor of Bridgewater Associates, speaks on stage during the Wall Street Journal’s 2024 The Future of Everything Festival in Spring Studios 22 May 2024, in New York City. (Dia Dipasupil / Getty image / getty -images)
Paying off this debt will also become more and more expensive. The interest and main payments on the debt would rise from around $ 10 trillion, of which $ 1 trillion is interest, up to around $ 18 trillion, of which $ 2 trillion would be interest. This would lead to the expenses being reduced, “unimaginable” tax increases or a lot of “printing and devaluating money and pushing interest rates into unattractively low levels,” he said.
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“This printing and devalue is not good for those who keep bonds as a wealth and which is bad for bonds and American credit markets is bad for everyone, because the American treasury market is the backbone of all capital markets, the backs of our economic and social circumstances,” Dalio said.
Chairman of the house Mike Johnson, R-La., Shakes the hands with the home majority Whip Tom Emmer, R-Minn. And House Republican conference chairman Lisa McClain, R-Mich., In addition to other house republicans during a registration ceremony for one, large, beautiful, beautiful (Kevin Dietsch / Getty images / getty images)
Billionaire hedge fund manager warns rates can cause the conditions ‘worse than a recession’.
“We spend 40% more than we assume, and this is a chronic problem,” he said. “So what you see are the payments of the debt services that start to squeeze away, don’t start, well, squeeze. So it is like plaque in the arteries that squeeze the purchasing power. And, as you can do, you will see that you can get an economic heart attack as a result.”
President Donald Trump is pumping his fist while he is Air Force one on board Morristown Municipal Airport in Morristown, NJ, 21 June 2025. (Mandel Ngan / AFP via Getty Images / Getty images)
On Thursday afternoon, the Trump’s congress approved “Big, Beautiful Bill” after back-to-back sleepless sessions for both the house and the Senate. The bill, which promotes Trump’s policy on taxes, the border, defense, energy and the national debt, has passed the House of Representatives ENG in a mainly party-line vote.
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All except two house republicans, Thomas Massie, R-Ky., And Brian Fitzpatrick, R-Pa., Voted for the bill that was adopted 218-214.
