The founder of the U.S. Bridge Water Fund, Daleo, warned in an interview with Bloomberg TV on 10 local time that the U.S. debt is at a very dangerous turning point, and the United States may suffer a "economic heart attack" in the near future.
Dalio said U.S. debt and debt-service expenses continue to accumulate. Currently, the government spends as much as US$7 trillion annually, while revenue is only US$5 trillion."Expenditure is 40% higher than income."
Dalio believes that when debt rises relative to income, debt “is like a plaque in the arteries starting to squeeze out spending,” “and as a result, you may get an economic heart attack.”
Dalio also warned that rapid growth in U.S. government debt was creating conditions that were "very similar" to those in the years before World War II.
According to data from the U.S. Congressional Budget Office, the ratio of U.S. federal government debt held by the public to U.S. gross domestic product (GDP) has reached 99% in 2024, and is expected to rise to 116% by 2034, higher than any time in U.S. history.