Ray Dalio says of the crisis that is waving on the horizon in the American crisis

Investor billionaire Ray Dalio She recently expressed her dangerous concerns about the escalating American federal debts.

What happenedDalio shared his concerns at the World Government Summit in Dubai on Thursday. He compared the national debt of $ 36 trillion and the painting that blocks the arteries in the American financial system.

Dalio expects the possibility of a “economic heart attack” during the next three years if the case is not treated immediately.

Dalio predicts this if the president Donald TrumpContinuous tax discounts, the United States will make a deficit of about 7.5 % of GDP. The White House and Congress urged a pledge to reduce the deficit to 3 % of GDP over the next three years.

According to the report by Fortune, with the recent increase in inflation, bond investors may request higher installments for fixed -income securities such as sovereign debt. This can increase government spending voltage for national debt service.

“When I calculate the offer and demand over the next year and three years, we have an immediate case,” Dalio said.

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Dalio is afraid that bond markets may soon be able to absorb the increasing amount of the issued treasury, which leads to high interest rates and “debt death spiral.” He emphasized the situation, saying that the US government should act quickly, even if it leads to societal damage.

White House Economic Adviser Kevin Haysit revealed plans to control inflation by increasing supply and reducing total demand. However, Dalio claimed that time is essence and sharp measures, including austerity, it may be necessary.

Why do it matterThe escalating financial deficit in the United States has been the cause of concern for some time now. Dalio warning is a dark reminder of potential economic repercussions if the issue is not dealt with immediately.

The United States government’s plans to control inflation may not be sufficient to prevent “debt death spiral”, as Dalio calls it. The situation calls for immediate and radical measures, even if it leads to societal damage.

The watch is stopped, and the US government must act quickly to avoid an imminent economic crisis.

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Ray Dalio’s immortal advice: “If you do not have gold, you do not know history or economy.”

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