What is the story about?
What's Happening?
Ray Dalio, founder of Bridgewater Associates, has expressed concerns about the U.S. national debt, which has reached $37.5 trillion. Speaking at the Future China Global Forum, Dalio warned that the U.S. may struggle to sell its debt due to a supply-demand imbalance. The Congressional Budget Office projects a widening gap between U.S. spending and revenue, with spending expected to reach $10.7 trillion by 2035. Dalio emphasized the need for the U.S. to address its fiscal trajectory, noting that cutting spending may not be feasible.
Why It's Important?
Dalio's warning highlights the potential risks associated with the growing U.S. national debt. As the debt-to-GDP ratio increases, investors may demand higher interest rates or reduce their purchases of U.S. debt, impacting the country's borrowing costs. The fiscal challenges could affect economic growth and stability, with implications for public policy and government spending. Dalio's remarks underscore the importance of addressing fiscal sustainability and exploring revenue-generating measures to mitigate the debt burden.
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