Ray Dalio Warns of Looming US Debt Crisis and Urges Gold and Bitcoin Allocations
A distinguished investor is urging folks to shift away from bonds and towards gold and Bitcoin (BTC) to defend towards a possible main US debt downside.
Ray Dalio, founding father of Bridgewater Associates, made the feedback in a LinkedIn put up published Friday, August twenty first, 2026.
He linked latest Treasury actions, together with Secretary Scott Bessent’s announcement of debt buybacks seemingly exceeding $4 billion, to a broader sample signaling hassle forward.
The US is spending about 40% greater than it takes in, with this yr’s income round $5.5 trillion and bills close to $7.5 trillion.
If the US authorities had been a enterprise, Dalio famous that debt service funds would complete about $11 trillion—roughly 200% of annual income.
Dalio highlighted that the federal government’s monetary situation is at an inflection level.
“I’m assured that the federal government’s monetary situation is at an inflection level. If this isn’t handled now, the money owed will construct as much as ranges the place they will’t be managed with out nice trauma.”
He outlined a three-part strategy to cut back the deficit to three% of GDP by chopping spending, elevating tax income, and decreasing rates of interest, all executed concurrently to keep away from trauma.
“All three must occur concurrently in order to forestall anyone from being too giant. If anyone is simply too giant, the adjustment can be traumatic.”
Dalio estimated a debt disaster may hit in a single to 5 years, guessing about three years if unchanged.
“My guess, which I suppose can be a foul one, is that it’ll are available in three years, give or take two, if the course we’re on isn’t modified.”
To organize, he beneficial buyers keep underweight in bonds whereas placing as a lot as 10% to fifteen% of a portfolio in gold and holding “a bit” of Bitcoin.
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