Dalio Sees US Debt Crisis Looming, Recommends Gold and Bitcoin

Ray Dalio, founder of Bridgewater Associates, has sounded the alarm on the US debt crisis. In a recent LinkedIn post, he warned that the government is spending around 40% more than it brings in each year, with the federal budget deficit reaching $432 billion in July alone.

Dalio estimated that if current trends continue, a crisis could arrive within three years, give or take two. He proposed a three-pronged approach to address this issue: cutting spending, raising tax revenue, and lowering interest rates concurrently.

The billionaire investor recommended investors reduce their exposure to bonds and instead hold 10% to 15% of their portfolios in gold, along with 'a bit' of Bitcoin. He cited the growing risks associated with debt assets like bonds as the government struggles to attract buyers for its enormous deficits.