Ray Dalio, who made a splash with his article "The Monetary System is Changing" during a period of tariff wars, has once again warned the U.S. about the cycle of borrowing and printing money.
"An economic heart crisis may occur within 3 years"
Dalio, stating that the U.S. is in a large debt cycle, pointed to the excessive increase in expenditures and said he expects an economic heart attack.
"The new budget and the excesses stemming from its expenditures could lead to an economic heart attack in 3 years. There may be a deviation of 1-2 years. The annual interest payments of the US government are now about 1 trillion dollars and are rapidly increasing. There is also a debt of 9 trillion dollars that needs to be rolled over annually. This is creating pressure in the economy."
"Pressure on the Fed will collapse the current system"
Dalio, who reminded that Trump has recently pressured the Fed for interest rate cuts, used the following expressions:
"The belief that central banks should be independent from governments is based on the idea that politicians will always seek interest rate cuts for their own interests. If the Fed's independence disappears, investors will believe that interest rates are artificially lowered and will not trust the reality of the markets. Then we will see an unhealthy decline in the value of money. Bonds are now being sold and gold is being bought. This actually indicates that we have reached the end of this debt system. If the Fed, under political pressure, allows inflation to heat up, it will lead to a depreciation of bonds and the dollar... The current monetary system will also collapse."
"Cryptocurrencies have now become an alternative"
Dalio, stating that cryptocurrencies have become an alternative where local currencies have lost value, said the following:
"Cryptocurrencies have now become alternative currencies. Because their supplies are limited... The local currencies of countries with a heavy debt burden will not be successful in preserving value."
Published: September 4, 2025 13:06Last Updated: September 4, 2025 13:12
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Ray Dalio warned: There will be an economic heart crisis within 3 years.
Ray Dalio, who made a splash with his article "The Monetary System is Changing" during a period of tariff wars, has once again warned the U.S. about the cycle of borrowing and printing money.
"An economic heart crisis may occur within 3 years"
Dalio, stating that the U.S. is in a large debt cycle, pointed to the excessive increase in expenditures and said he expects an economic heart attack.
"The new budget and the excesses stemming from its expenditures could lead to an economic heart attack in 3 years. There may be a deviation of 1-2 years. The annual interest payments of the US government are now about 1 trillion dollars and are rapidly increasing. There is also a debt of 9 trillion dollars that needs to be rolled over annually. This is creating pressure in the economy."
"Pressure on the Fed will collapse the current system"
Dalio, who reminded that Trump has recently pressured the Fed for interest rate cuts, used the following expressions:
"The belief that central banks should be independent from governments is based on the idea that politicians will always seek interest rate cuts for their own interests. If the Fed's independence disappears, investors will believe that interest rates are artificially lowered and will not trust the reality of the markets. Then we will see an unhealthy decline in the value of money. Bonds are now being sold and gold is being bought. This actually indicates that we have reached the end of this debt system. If the Fed, under political pressure, allows inflation to heat up, it will lead to a depreciation of bonds and the dollar... The current monetary system will also collapse."
"Cryptocurrencies have now become an alternative"
Dalio, stating that cryptocurrencies have become an alternative where local currencies have lost value, said the following:
"Cryptocurrencies have now become alternative currencies. Because their supplies are limited... The local currencies of countries with a heavy debt burden will not be successful in preserving value."
Published: September 4, 2025 13:06Last Updated: September 4, 2025 13:12