Founder of Bridgewater Associates Ray Dalio warns of serious economic and financial consequences after the budget law of US President Trump has adopted the congress.
In a post on the social media platform X, the billionaire says that Trump’s “One Big Beautiful Bill” will increase the American national debt of around $ 230,000 per American household to $ 425,000 per American household in the following decades.
According to Dalio, the ballooning national debt will have serious consequences.
“Now that the budget law has adopted the congress, we can see what the projections look like for shortages, government debt and costs for debt services. In short, the bill is expected to lead to spending of around $ 7 trillion a year with the influx of approximately $ 5 trillion per year, the debts of the money in $ 230 is in $ 230 in $ 430
That will increase interest and principal payments on the debt from about $ 10 trillion ($ 1 trillion in interest, $ 9 trillion in principal) to about $ 18 trillion (or which $ 2 trillion is interest payments), which will lead to either a big squeezing out (and cinging off) Increases, or a lot of printing and devaluing of money and pushing interest rates to unattractively low levels. ”
Dalio believes that the remedy for the imminent tax crises is to lower expenses and increase taxes to reduce the annual deficit to the gross domestic product (GDP) ratio.
“These prints and devaluation is not good for those who hold bonds as a wealth and which is bad for bonds and American credit markets is bad for everyone, because the American Treasury market is the backbone of all capital markets, which are the backs of our economic and interest rate of roughade. GDP up to about 3% of the adjustments, and the interest rates will probably occur.
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