Ray Dalio, founder of Bridgewater Associates: The United States could face a debt crisis within three years.

Tapbit news, October 6 — Ray Dalio, founder of Bridgewater Associates, warned in an interview with Bloomberg that the United States could face a debt crisis within the next three years as rising debt interest payments increasingly squeeze other federal budget priorities.

Dalio pointed out that the U.S. government collects about $5.5 trillion in annual revenue and spends about $7.5 trillion, leaving a fiscal deficit of nearly $2 trillion. At present, the U.S. federal government pays about $1 trillion in annual interest expenses. When maturing debt that needs to be refinanced is included, annual debt servicing and refinancing needs total about $11 trillion.

At the same time, U.S. Treasury yields have continued to climb. The 10-year Treasury yield closed at 5.31% on October 5, while the 30-year yield reached 5.66%, further increasing the government's financing pressure.

Dalio recommended reducing the fiscal deficit as a share of GDP from about 6% to 3% by cutting spending, increasing tax revenue, and lowering interest rates. On asset allocation, he previously suggested allocating 10% to 15% of an investment portfolio to gold, with Bitcoin accounting for only a smaller proportion.

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