Billionaire Ray Dalio Says US Debt Crisis Is 'Dangerously Unsustainable' — Warns It Must Be Solved Before A Financial 'Heart Attack'

The U.S. is on the brink of what billionaire Ray Dalio calls a financial "heart attack." With national debt now topping $36 trillion and the debt-to-GDP ratio at 123% at the end of 2024, the Bridgewater Associates founder is sounding the alarm. 

In a recent LinkedIn post, Dalio warned that the country's fiscal trajectory is veering toward collapse unless immediate action is taken.

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Tariffs, Trade Shocks, and a Brewing Economic Storm

Dalio's post came just as President Donald Trump’s administration announced a fresh round of tariffs on Chinese imports, with rates jumping to 145%. China quickly responded with its own tariffs, hitting U.S. goods with rates up to 125%.

While the billionaire didn’t directly critique the policy, he pointed to the historical purpose of tariffs during great power conflicts: they help nations reduce their dependence on foreign supply chains. He explained that tariffs often lead to inflation at home and stagflation globally.

The economic ripple effect could shrink innovation and productivity across several U.S. sectors.

A study from Yale's Budget Lab found that tariffs could raise the average annual cost per U.S. household by $3,800. 

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The same research projected a 2.3% increase in overall consumer prices. Meanwhile, The Wall Street Journal reports economists have significantly downgraded their outlook for the U.S. economy, citing aggressive new tariffs as the primary concern.

Though Dalio acknowledged that tariffs can hinder corporate efficiency, he also argued they make domestic industries more resilient in times of global conflict — if consumers still buy enough to keep them afloat.

But tariffs aren't the only concern. Dalio's core argument centered around U.S. debt levels, which he described as “dangerously unsustainable for monetary, economic, and geopolitical reasons.” 

The Congressional Budget Office expects federal spending to reach $7 trillion in 2025, with revenues at just $5.2 trillion — a gap that could further swell the national deficit. According to the Committee for a Responsible Federal Budget, the U.S. debt could hit 156% of GDP within 30 years.

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Dalio warned this growing imbalance between production, trade, and capital flows "must come down one way or another."

In February, Dalio delivered a chilling metaphor for the debt issue during a separate public appearance. He likened the financial system's vulnerability to a patient at risk of a heart attack. "You're in a high risk of this heart attack, essentially, and now  what are you going to do about it?" he said.

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