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Ray Dalio Trump urges the deficit to 3 % of GDP within three years or let the economy suffer

Ray DalioFounder of the world’s largest hedge box, Bridgewateer AssociatsIt warns of economic instability due to high global debt levels and urges financial responsibility.

What happened: In an interview with Taker Carlson In the speech of governments, Summit 2025, Ray Dalio He explained his systematic approach to understanding global economic courses. Determine five major powers that lead the global economy and the formation of financial markets.

The billionaire investor emphasized the direct strength of the debt cycle, and the comparison of debt with the periodic system of financial markets. He warned that when the debt grows faster than income, it leads to economic instability.

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Currently, global debt levels are at an “unprecedented” level, as the US government spends about $ 1 trillion annually on interest payments alone. He warned that more than 9 trillion dollars of debt should be paid during the next year, which leads to a defect in demand in the bond market and the high interest rates.

When detailing, Dalio stated that debt holders and debt buyers will not buy enough to meet the supply, which led to high interest rates and asset prices. He added that after that, the central banks will be forced to print more money, which leads to a cash inflation.

He explained that the United States will face a deficit of about 7.5 % of GDP and urged politicians and the president Donald Trump To reduce it to 3 %. Dalio has warned that failure to address the debt issue during the next three years may lead to extreme financial instability.

When asked if the waste spending discounts by Duj, it is treated before Timing CEO Elon Musk Ray Dalio will help achieve a 3 % deficit threshold, “I don’t see him.” He also explained that Doge should also focus on the impact of spending discounts and initiatives enhancing efficiency on interest rates if it is necessary to address the problem of deficit. He stressed that the time horizon for a period of three years can be achieved if the focus is on increasing tax income, carrying out discounts in spending “acceptable”, and focusing on interest rates.

See also: Tesla loses the rating of $ 1 trillion with 8 % decrease-

Why do it matter: Dalio’s warning comes at a time when the US federal debt rose to $ 36.4 trillion compared to GDP $ 29.1 trillion, which led to a debt rate to GDP by 125 %. Since the epidemic began in 2020, the federal debt increased by 80 % while the GDP has grown only 38 %. This disturbing increase led to Dalio’s call to take urgent measures to address the increasing US federal debt crisis. Even on previous occasions, Ray Dalio called for a 3 % deficit goal and warned that the United States was facing a “whirlpool of death”.

According to the CBO budget office dropping, the gross domestic product deficit will decrease to 5.2 % by 2027, with revenue rising faster than expenses. In the following years, expenses grow at a faster rate of revenues, on average. By 2035, the average deficit will reach 6.1 % of GDP-higher than the average of 50 years of 3.8 %.

Photo via Shutterstock

Disintegration: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Beenzinga editors.

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