Dalio Warns of $60 Trillion Debt Crisis, Backs Bitcoin as Safe Haven
Ray Dalio, founder of Bridgewater Associates, has expressed concerns about the potential for severe financial disruption due to rising US debt. In a recent analysis on LinkedIn, he warned that total federal debt could reach $60 trillion within the next decade.
This projection is based on current trends and the Congressional Budget Office's projections of a $1.9 trillion fiscal 2026 deficit, with federal outlays of $7.4 trillion and revenue of $5.6 trillion. The total public debt outstanding has already surpassed $40 trillion as of August 18.
Dalio recommends diversifying one's portfolio to include scarce assets such as gold and Bitcoin, citing their potential to provide protection against long-term currency depreciation. He advises allocating between 10% to 15% of one's money in gold and a small position in Bitcoin.