Bridgewater Associates founder Ray Dalio has highlighted the risks posed by U.S. debt and inflation, suggesting they are nearing the end of a "big cycle." In a response to a Financial Times interview, Dalio warned that if current policies remain unchanged, the U.S. could face an economic crisis akin to a "heart attack" due to debt issues. He noted that a weakened Federal Reserve independence could pressure bond and dollar values, prompting international investors to increase gold holdings while reducing U.S. Treasury bonds.
Dalio also pointed out that cryptocurrencies, with their limited supply, could become an attractive alternative to fiat currencies, especially if the supply of dollars increases and demand decreases. This potential shift underscores the growing appeal of digital assets in the face of traditional currency challenges.
Ray Dalio Warns of U.S. Debt and Inflation Risks, Sees Crypto as Attractive Alternative
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