Billionaire hedge fund founder Ray Dalio has warned that the United States has entered a terminal 'debt death spiral', a self-reinforcing crisis where the government must borrow simply to fund interest payments on its $39 trillion debt.
Speaking at the Greenwich Economic Forum, the founder of Bridgewater Associates drew direct parallels between the current market landscape and the stagflationary crisis of the early 1970s. Dalio argued that the rapid devaluation of fiat currency and the surge in government spending are forcing a fundamental breakdown of the monetary order, leaving traditional paper assets vulnerable to a protracted market crash.
