Dalio Warns US Debt Crisis Looms, Backs Gold and Bitcoin as Safe Havens

Ray Dalio, founder of Bridgewater Associates, is warning about a potential US debt crisis and advising investors to diversify their portfolios by allocating 10-15% to gold and holding 'a bit' of Bitcoin.

Dalio believes that the federal government's fiscal position has deteriorated rapidly, with a shortfall of around $2 trillion this year. He estimates that the US debt crisis could arrive in 'three years, give or take two.'

To mitigate this risk, Dalio recommends reducing the federal deficit from 6% to 3% through spending cuts and increased tax revenue.

Individual investors should not rely solely on government actions and should prepare for a potential crisis by diversifying their assets. Dalio suggests holding gold and Bitcoin as protection against a US debt crisis.