Bridgewater founder Ray Dalio warns the United States is entering a new phase where expanding bond supply drives yields higher, increasing borrowing costs and inflating government debt. He predicts this debt spiral will persist unless high interest rates cause sufficient economic damage to restore balance between fund supply and demand. The yield on the US 10-year Treasury recently approached 5.4%, its highest level in nearly 25 years. While Dalio has previously advised investors to sell bonds in favor of gold and Bitcoin, firms including BlackRock and Morgan Stanley Investment Management have turned bullish on Treasuries, arguing current high yields offer allocation value.