Ray Dalio Forecasts 'Big, Painful Disruptions' as US National Debt Set To Swell Over Next Decade

In the wake of President Donald Trump‘s budget bill approval, billionaire and financial advisor Ray Dalio anticipates serious economic repercussions.

What Happened: Dalio has voiced serious apprehensions about the financial future of the US. President Trump’s “One Big Beautiful Bill” is projected to escalate the national debt from roughly $230,000 per household to $425,000 within the next decade.

In a post on X, Dalio cautions that this national debt surge will have severe consequences. The bill is expected to lead to an annual expenditure of about $7 trillion against an income of approximately $5 trillion.

As a result, the debt, currently 6x of the income, 100% of GDP, and about $230,000 per family, will increase to about 7.5x the income, 130% of GDP, and $425,000 per family over the next decade.

This rise will elevate the interest and principal payments on the debt from about $10 trillion to roughly $18 trillion, resulting in significant spending cutbacks, unprecedented tax increases, or extensive money printing and devaluation.

Also Read: US Faces ‘Financial Heart Attack,’ Ray Dalio Warns — Shares Investment Strategies: ‘The Safest Investment That You Can Get Right Now Is An Inflation-Indexed Bond’

Dalio proposes that the solution to this looming fiscal crisis is to cut spending and raise taxes to decrease the annual deficit to GDP ratio.

He warns that if these measures are not soon implemented, “big, painful disruptions will likely occur.”

Why It Matters: The forecasted doubling of the US national debt over the next decade is a serious concern.

The predicted consequences of this increase, including significant spending cutbacks, unprecedented tax hikes, and potential money devaluation, could have far-reaching implications for the US economy.

Dalio’s warning serves as a stark reminder of the need for fiscal responsibility and strategic economic planning to mitigate these potential disruptions.

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