Source: Cailian
Billionaire investor and founder of the Bridgewater Fund, Dario, once again warned that the U.S. government debt is growing too fast and is forming a situation “very similar to that before World War II.”
Dario said that when debt continues to rise as a proportion of income, it is like plaque in the arteries that eventually squeezes available spending space. The 76-year-old billionaire investor said the trend of debt accumulation is threatening economic vitality.
Dario has long warned of risks of out-of-control U.S. debt. Just last month, he noted that expanding debt has posed a threat to the “global monetary system”.
According to estimates by the Congressional Budget Office (CBO), the U.S. public debt is currently roughly equal to the U.S. GDP. By 2034, this percentage is expected to rise to 116%, the highest level ever.
Dario stressed that soaring debt is only part of the problem, and the worsening global geopolitical conflicts and the domestic gap between the rich and the poor are also creating a "worrying environment."
When asked if he believed a new world war was imminent, Dario replied that some form of "civil war" was brewing in the United States and more countries, stemming from irreconcilable differences within society.
He added: "These conflicts will eventually evolve into confrontations and tests of all forces. If we are indifferent to this, the risk will be even greater."
Dario founded Bridgewater Fund in 1975 and is known for promoting a so-called "extreme transparency" culture within the company.
Since 2017, he has gradually dropped out of the management of the company. Earlier this year, he sold the last shareholding and withdrew from the board of directors, formally completing his departure from Bridgewater. As of December 31, last year, Bridgewater’s management assets amounted to $92 billion, down from $140 billion at the beginning of 2023.
Earlier this week, Dario also gave his investment advice, saying that even if the price of gold has soared to a record high of more than $4,000 per ounce, investors should still allocate up to 15% of their assets to gold.
Dario pointed out: "The situation is very similar to the situation in the early 1970s... You ask yourself, where should the money be? When you hold money in your hands and invest it in debt instruments, and the market is flooded with debt and bonds, this asset is no longer an effective store of wealth."
Ganglach, CEO of DoubleLine Capital, recently put forward similar views, suggesting increasing the gold allocation ratio to 25%. He believes that inflationary pressures and a weakening US dollar will continue to shine.