Dubai, Arabian Emirates -the hedge fund -titan Ray Dalio warned a new warning of the US economy and warned of poor consequences if the Trump government does not reduce the country's debt.
“It is as if I was a doctor and talked to you about your condition, I would tell you that this is very, very serious now. All of these are big problems” in Dubai. “What you have to do is to reduce your deficit from about 7.5% of GDP to 3% of gross domestic product, and you can do that. There are certain things that you can do in a certain way The real problem is a political problem.
The US gross debt debt was around 36.22 trillion dollars from February 11th. And other units outside the US government.
High debts mean that the government spends more for interest payments and, in the event of future economic crises, is more economical. It also leads to higher inflation and creates a burden for future generations.
“I want to alert people. I want to alert government officials,” said the founder of billionaire Bridgewater Associates. “I want to help, you know, and that's why I feel like the doctor, and then I would all say politically … if this does not happen, and we have the equivalent to an economic heart attack or a heart attack on the bond market, then you know , who is responsible because it can happen.
“Therefore, it requires the same type of discipline as if I would tell you, ok, you have to change the way you have to change your exercise routine and you have to do these things.”
Dalio emphasized that governments are responsible and that leaders should oblige to reduce the US budget deficit from 7.5% to 3% of its GDP or withdrawal.
When asked what his message was to the Trump administration, Dalio replied:
“I think you recognize the problem and how can you reduce the costs in the measures that are taken? How do you increase productivity? It is the conservative side because you know how much can the cutting actually be and what are the consequences of cutting and each of them.
Dalio also warned of debts in private loans and said that a “debt death spiral is the part of the cycle when the debtor has to lend money to pay the debt service, and it accelerates, and then everyone looks at it. I want to attract. the debts. “
Dalios Bridgewater Associates is one of the world's largest hedge funds. According to the US Securities and Exchange Commission, it had 171.7 billion dollars of assets from September 2023.
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