Ray Dalio, the billionaire founder of hedge fund organisation Bridgewater Associates, says the UK’s borrowing is leading to a “debt death spiral” which self-fulfils to become worse over time.
Speaking to the Financial Times this week, Dalio explained the UK government’s continued rise in borrowing, which hit almost £18bn last month, coupled with rising cost of paying off that debt, meant the only viable outcomes were to cut spending, raise taxes - or take on even more debt to pay against the earlier amounts. The US is increasingly facing a similar issue, he believes.
