Ray Dalio, founder of the hedge fund, said that he had a discussion with the Speaker of the House of Representatives Judy Arington and other Republicans in the House of Representatives on the National Religion on Tuesday.
“I appreciate our ability to conduct an explicit non -political debate on mechanics behind how countries collapsed because they apply to the conditions presented,” Dalio said in a statement on the meeting on Tuesday.
Arrington Dalio thanked them, adding that Dalio “looked a warning of Congress members about the urgent need to address borrowing and increasing spending significantly.”
Dalio said in his statement that there is “very wide recognition” among those present that the budget deficit needs to be reduced to about 3 % of the country’s gross domestic product.
Dalio added that this reduction will ensure that the costs of debt service are not “pressure on the government’s ability to spend.”
“I look forward to staying in contact with these issues and conducting similar discussions with others so that there are realistic assessments of issues and what can be done to deal with them,” Dalio said.
Dalio has already looked warnings about the economic risks of high debt levels.
Last month, Dalio said in an interview with the Global Government Summit in Dubai that America may suffer from the financial equivalent of a “heart attack” if it does not reduce the spending of deficit.
“Waiting for a long time is like to ignore the accumulation of plaque until a heart attack occurs,” Dalio said in February.
The federal government raised $ 4.92 trillion of revenue in the fiscal year 2024, but spent about 6.75 trillion dollars. This created a deficit of $ 1.83 trillion – an increase of $ 138 billion in debt from the previous fiscal year.
Dalio said in an interview with Bloomberg “Odd Lots”, which previously broadcast that the United States may face a debt crisis in the next three years if it does not act quickly.
“If you don’t do it, you own it, well, you have to take responsibility for the consequences,” Dalio told Bloomberg.
“When the economy and heartfelt species come of some kind, you will find yourself that voters will not be very happy. So you own it.”
A representative of Dalio did not respond to a comment from Business Insider.
